News Item

Half-year results for the six months ended 30 June 2012: In line with expectations - 22/08/2012

Financial performance in line with expectations

- First-half revenue reduced, primarily due to the continued re-scaling of UK construction and the timing of project awards in the Middle East
- Strong growth in underlying profit from operations reflects a continuing improvement in operating margin
- Underlying profit before taxation and underlying earnings per share increased, despite a higher net financial expense
- Substantial increases in reported profit before taxation and basic earnings per share, included a contribution from the sale of equity investments in Public Private Partnership projects

Strong balance sheet
- Net borrowing better than expected
- Over £800m of long-term borrowing facilities

Good revenue visibility: strong order book plus probable orders; record pipeline of opportunities
- 92% revenue visibility(5) for 2012
- £2.2bn of new and probable orders won in the first half, with total orders and probable orders worth £18.3bn at 30 June 2012 (31 December 2011: £19.1bn)
- Record pipeline of contract opportunities of £35.6bn (31 December 2011: £33.1bn), including major UK public sector outsourcing opportunities, supports targets for growth

Interim dividend increased by 2% to 5.4p (2011: 5.3p)

Carillion Chairman, Philip Rogerson, commented:

"Carillion delivered a robust first-half performance, in line with the Board's expectations, despite market conditions remaining challenging. Given the strength of our business model, order book and pipeline of contract opportunities, we remain on track to deliver full-year results in line with expectations and to achieve our medium-term targets, namely to deliver growth in support services and to double our annual revenues in the Middle East and in Canada in the five-year period to 2015, in each case to around £1 billion.''

(1) After Joint Ventures net financial expense of £5.7 million (2011: £7.0 million) and taxation charge of £1.4 million (2011: £0.8 million credit) and before intangible amortisation, non-recurring operating items and non-operating items (see note 3 to the financial information on page 26).

(2) Before Joint Ventures net financial expense and taxation, intangible amortisation and non-recurring operating items (see note 3 to the financial information on page 26).

(3) After Joint Ventures taxation charge of £1.4 million (2011: £0.8 million credit) and before intangible amortisation, non-recurring operating items and non-operating items (see note 3 to the financial information on page 26).

(4) Before intangible amortisation, non-recurring operating items and non-operating items (see note 3 to the financial information on page 26).

(5) At 30 June 2012, based on expected revenue and secure and probable orders, which exclude variable work and re-bids.