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Middle East contracts boost Carillion |
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March 4th, 2010 |
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Shareholders were rewarded with a dividend up 12pc to 14.6p as revenues grew a modest 4pc to £5.4bn in market conditions the company described as "challenging".
Carillion's strategy of expanding its support services business is clearly bearing fruit as those activities contributed 52pc of its £182m pre-tax profits.
But chief executive John McDonough was most enthusiastic about the company's progress in the Middle East.
"We're expanding, particularly in Abu Dhabi," he said. "While Dubai dropped from £250m to £100m, Abu Dhabi went from £93m to £300m. We also have a strong presence and growth in Oman and we're expanding into Qatar.
"We get an 8.5pc margin in the Middle East – bear in mind our UK margins are 1.4pc – and they're sustainable above a 6pc margin rate."
While the company expects to reduce its reliance on low-margin UK construction from £1.8bn to £1.2bn over the next three years, it is looking forward to a boom in the support services sector.
"There's huge organic growth potential," said Mr McDonough. "There could be £25bn of support services business outsourced from national government in the next five years."
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Source: www.telegraph.co.uk |
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