While adverse currency effects may have flattened revenues during 2014, Carillion's (CLLN) support services business put in a strong showing. This helped boost underlying operating profit for the division, up 15 per cent to £136m - that growth that looks set to continue thanks to some large government contract wins, including a £2.5bn deal to provide facilities management services for the Defence Infrastructure Organisation. Overall, the group's order book grew by 4 per cent to end the year at £5.1bn.
The group's underlying operating margin was stable at 5.6 per cent. Chief executive Richard Howson attributed this to Carillion's decision to only take on contracts with an appropriate risk profile. Operating profits from its Middle East business grew by almost a third thanks to increased contract wins, particularly from Qatar as it prepares to host the 2022 World Cup and Oman thanks to increased tourism spending.
Carillion made two Canadian acquisitions during the year - a 49 per cent interest in the Bouchier Group and 60 per cent in Rokstad Power Corporation. Mr Howson said the infrastructure service space is a high-potential market for acquisitions, particularly in Canada.
Broker Morgan Stanley expects adjusted EPS of 34.6p this year, up from 28p in 2014.
CARILLION (CLLN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 359.7p | MARKET VALUE: | £1.55bn | |
| TOUCH: | 359.7-359.9p | 12-MONTH HIGH: | 395p | LOW: 294p |
| DIVIDEND YIELD: | 5% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 203p* | NET DEBT: | 20% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 5.14 | 168 | 36.9 | 15.50 |
| 2011 | 5.05 | 143 | 32.0 | 16.90 |
| 2012 | 4.40 | 165 | 34.6 | 17.25 |
| 2013 | 4.08 | 111 | 23.3 | 17.50 |
| 2014 | 4.07 | 143 | 28.0 | 17.75 |
| % change | - | +29 | +20 | +1 |
Ex-div: 14 May Payment: 12 Jun *includes intangible assets of £1.6bn, or 374p a share | ||||
