Carillion boss Richard Howson rules out move on Balfour BeattyComments Off on Carillion boss Richard Howson rules out move on Balfour Beatty
Almost a year ago, Carillion abandoned a £3 billion attempt to merge with Balfour Beatty, but Howson ruled out resurrecting the deal, even though the company issued the seventh in a string of profit warnings.
“That chapter is behind us. We are fully focused on bolt-on acquisitions and mobilising the contracts we have won,” Howson said.
Carillion expects to increase revenue this year, despite a slow-down in orders because of the general election.
The company started the year with a huge boost from contract wins in 2014. With an order book of £18.6 billion, Carillion looks set to achieve profit growth in the full year and said its borrowings would fall.
Howson said that he expected Government procurement, which makes up 40% of Carillion’s group revenues, was likely to return to normal in the third quarter once departmental spending reviews were complete.
The plunging oil price has had little impact on the company’s thriving Middle East business, he said, partly because Carillion is working on lots of Expo 2020 building projects in Dubai which will go ahead regardless.
Carillion also announced today that it had won an £80 million construction contract in Oman for BP to build a base for the oil giant’s Khazzan gas project.