Carillion maintains guidance after mixed third quarter

3rd Oct 2013 08:05

Support services group Carillion said underlying full year profits should be in line with expectations after a strong flow of new contracts in the third quarter counterbalanced a delayed start to a government energy efficiency programme. The Energy Company Obligation (ECO), where Carillion expected to generate bountiful business installing insulation on behalf of UK energy companies, has started slowly and Carillion said it may not be subject to further delays.The FTSE 250 group revealed that it had consequently decided to cut its energy services business down to size during the remainder of 2013.The cost of this restructuring was estimated at £40m non-recurring operating charges in 2013, but the company admitted it was "still assessing the extent of the restructuring required".On the upside, Carillion said its contract order book and pipeline of further deals both remained strong to support the maintenance its of full year expectations and medium-term targets for growth.New contract wins were also announced, including confirmation of a deal to manage the £90m construction to of the Kempinski Wave Hotel in Oman.The Wolverhampton headquartered company has also been chosen as preferred bidder by West Sussex Council for a 10-year energy saving support services contract worth around £100m.Another contracts won since half year results were announced in August was a 12-year highway maintenance contract in Ontario, Canada.Shares in CLLN were down 0.4% to 314.9p at 08:25 on Thursday.OH