Carillion eyes record pipeline of council work

Aaron Morby 14 years ago
Share

Carillion’s support services arm is facing its largest ever pipeline of contract opportunities as councils seek to cut costs.

Chief executive John McDonough said the support services arm, which is now the contractor’s biggest business, was on course to deliver a 5% margin this year and strong growth.

He said: “We expect substantial opportunities for growth as we move through 2011 and into 2012 and 2013, as pressure on both central and local government to reduce the cost of public services leads to an increase in outsourcing.”

McDonough said that in the medium term Carillion expected to see “substantial” growth in Canada and the Middle East, doubling turnover in the next three to five years.

Already work wins in Canada had helped to offset planned scaling back of UK workloads from £1.8bn to £1.2bn over the next three years.

In an upbeat trading statement, McDonough said Carillion was on course to deliver its targeted performance after bagging £200m in support services contracts and £60m worth of orders from the financial services sector.

Its Openreach support services contract is also expected to increase by £30m to £145 million, reflecting an increase in scope.

Carillion also revealed today that it had signed a £124m contract to build two 45-story apartment blocks in Dubai.

Latest news

Crest Nicholson rejects £650m Bellway bid

Bellway confirms recent bid for rival
3 hours ago

Hill submits £800m East London estate rebuild plan

Over 1,900 homes to be built in five phase at Teviot Estate in Poplar
14 hours ago

Statom starts on £25m Bristol Airport precast car park

Major work package on transport upgrade being overseen by Griffiths Farrans JV
12 hours ago

Build problems plunge Crest Nicholson to a £31m loss

House builder unearths more defects on completed sites
17 hours ago

Rebooted Amey lifts contract win rate to 1 in 3 bids

Amey chief says firm exceeded expectations in first year under new owners
18 hours ago

BAM Nuttall fined £2.3m after worker drowned

Court hears how series of safety failures led to tragedy
1 day ago

OCU buys Scottish civils contractor RJ McLeod

Deal takes multi-utility infrastructure specialist revenue to over £800m
2 days ago

£220m plan to restore secret wartime tunnels approved

Tunnels under High Holborn to become cultural exhibition space
2 days ago

Galliford Try wins £69m Scottish school job

Deal sealed on Paisley Grammar School project in Renfrewshire
19 hours ago

Balfour wins design for £690m Skye transmission job

Main work contract for 137km power line to be awarded later this year
2 days ago

Student and resi developer Fortis goes under

Cheshire based developer follows construction arm into liquidation
2 days ago

Construction output falls for third month running

Heavy rain and strong winds blamed for sharp fall in activity in April
2 days ago

Plan in for Leeds 27-storey block of flats

390 flats planned at former Morgan Sindall office site
2 days ago

Firms readied for £1.5bn Parliament estate upkeep deal

Invitation to tender due to go out next month
2 days ago

Amey switches kit supplier

Deal with HSS was worth £24.5m a year to rental specialist
2 days ago

Track workers scatter to avoid runaway rail trolley

Track trolley careers 1km towards work site
2 days ago

Direct delivery model pays off as Murphy profit soars to £67m

Group operating margin jumps from 3% to 5% in record year
3 days ago

Ex-Galliard boss to lead Battersea next building phase

Don O’Sullivan joins as plans advance to start phase 3C of power station redevelopment
3 days ago

£100m Digbeth 33-storey flats job out to bid

483 flats will be delivered for Clarion housing association
3 days ago

Van Elle fined £233,000 after piling rig kills driver

Court hears how tragedy was caused by poorly maintained plant
3 days ago

Renew buys utilities contractor Excalon

Infrastructure giant expand into electricity transmission market with £26m deal
3 days ago

Planning for new homes plunges to record low

Home builders call for urgent action from incoming government
3 days ago

JTRE starts £400m 21-floor London tower scheme

Office block and 64 affordable homes to be built at 220 Blackfriars Road site
4 days ago

R G Carter construction profits up despite 24% revenue fall

Selective client choice help profit jump to £6m from £1m previously
4 days ago

Refurbs power London office work to record high

London Office Crane Survey office work starts exceed 4m sq ft for record third quarter
4 days ago

Knight Build owed money for work on UK’s poshest street

Contractor takes legal action over unpaid bills on new luxury flats complex
4 days ago

Winvic ranks top of May contracts league

Large residential scheme in Leeds caps strong haul of orders
4 days ago

Bid race starts for up £95m repairs to PFI hospital

Roseberry Park Hospital in Middlesbrough hit by serious defects
4 days ago

Building Safety changes slow down construction recovery

Confused market contains paradox of falling workload and contractors claiming they are too busy
4 days ago

Wates rejigs businesses as veteran leader retires

Wates Construction Group MD Paul Chandler to retire at end of year
1 week ago

Contractor services