Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Carillion profit predicted despite redundancies

Carillion is expecting strong revenue and profit for 2011 on the back of the acquisition of Carillion Energy Services, despite confirming last week that 1,500 staff will be made redundant.

The support services and construction firm issued 4,500 staff with a 90-day statutory notice, saying government plans to cut Feed-in Tariff subsidies will “reduce the size of the solar photovoltaic market significantly”.

It has made a provision of up to £10 million for restructuring. However, the company said it expects total revenue for the year to December to be similar to 2010 - at around £5.1 billion - thanks to a “well-balanced UK support services and international business mix”.

Underlying pre-tax profit and operating margins are expected to increase, while year-end net debt is expected to be below £100m - lower than the £150m target set after the acquisition of CES, formerly Eaga, for £298.4m in April.

The company said: “We continue to expect the acquisition of CES to deliver strong returns as demand for energy efficiency services remains high.”

It said it is now proposing to “extend the restructuring of CES to deliver a substantial further improvement in overall operational efficiency.”

The company welcomed an additional £200m of government funding to boost Green Deal take-up and reported a high-quality order book, plus opportunities from central and local government outsourcing.

The company added that the Treasury’s review of the private finance initiative confirms that private finance will continue to play a significant role in funding public sector projects.

Carillion expects the £2bn priority schools PPP programme and the £200bn National Infrastructure Plan to generate new opportunities over the medium term.