Carillion FY13 Profit Slips; Says JV Bags £150 Mln Worth Middle East Contract

(RTTNews) - Carillion plc (CLLN.L) reported a 33% fall in full-year 2013 pre-tax profit to 110.6 million pounds, from 164.8 million pounds in 2012. For the recent year, basic earnings per share dropped by 33% year-over-year to 23.3 pence, from 34.6 pence. Reported pre-tax profit and basic earnings per share reflected the charge of 42.9 million pounds for restructuring energy services, according to the company.

On an underlying basis, pre-tax profit for the year totaled 174.7 million pounds, down 13% over the previous year. Annual underlying earnings per share were down by 14% to 34.7 pence. The declines in both underlying pre-tax profit and underlying earnings per share reflected business rescaling and higher net financial expense.

As expected, revenue of 4.1 billion pounds in 2013 was lower than the prior year's 4.4 billion pounds, mainly due to the rescaling of UK construction, the company said.

In a separate press release, Carillion said its Joint Venture business in the United Arab Emirates, Al Futtaim Carillion, has been granted a contract worth about 150 million pounds by Meraas to construct The Avenue Phase 2 City Walk development in Dubai. The contract comprises the construction, commissioning, testing and completion of the second phase of a high-quality family entertainment and retail development of over one million square feet in the Jumeirah area of Dubai. Al Futtaim Carillion completed the first phase of this major development in 2013. Construction would begin imediately with completion in the second quarter of 2015.

Also, the company has been chosen as the preferred bidder for support services contracts by Canada Natural Resources Ltd. (CNRL) and Royal Bank of Scotland (RBS, RBS.L), and has won a support services contract from Arqiva that together are expected to be worth more than 370 million pounds over 5 years.