Carillion to return to revenue growth in 2014

7th May 2014 15:40

Construction and civil engineering group Carillion expects to start increasing revenue again this year after a shake-up of its construction operations.Carillion, which is involved in hospitals, transport, communications and other sectors, said first-half revenue was likely to be slightly lower than in the first half of last year mainly due to the planned re-sizing of its UK construction business.However, it added: "We continue to expect the group to resume revenue growth in 2014, including the resumption of revenue growth in UK construction in the full year."It expects to make cash-backed profit in 2014 and to return to positive net cash generation, with a consequent reduction in net borrowing at the end of the year.Carillion added that it had won £1.5bn of new orders and probable orders so far this year including support service deals together worth £370m with Royal Bank of Scotland, communications group Arqiva and Canadian Natural Resources.It won other contracts with Nottingham University Hospitals NHS Trust, Network Rail and several deals in Dubai and Abu Dhabi.Chairman Philip Rogerson said: "Although markets continue to be challenging, our expectations for 2014 remain unchanged. Furthermore, we believe the group remains well positioned as the medium-term outlook across our markets continues to improve."Shares rose 4.3p or 1.2p to 362.7p by 16:35 in London. PW