The firm said margins in its interim results next month would be higher as the benefits of rescaling the UK construction division continue to filter through.
In a trading statement today Carillion said: “We continue to expect the half-year and full-year operating margins to be lower than in 2014, consistent with the margin trending back towards a more normal level, as the temporary benefits to margins from rescaling our UK construction business, decline.
“However, we also continue to expect the full-year margin to be higher than the 2.5% to 3.0% level, at which we expect the margin to stabilise over the next 12 to 18 months.”
Carillion said performance is in line with expectations as it maintains “margin discipline by being very selective in choosing the contracts for which we bid, supported by our ongoing focus on cost management.”