好色先生TV

Carillion has confirmed cutting back its energy services division in response to lower than expected demand in the Green Deal and Energy Company Obligation markets cost it 拢43m last year, in financial results for the year to 31 December 2013 posted today.

The one-off restructuring charge contributed to a 33% drop in pre-tax profit to 拢110.6m, down from 拢164.8m the previous year.

The 拢43m restructuring charge is slightly larger than previously indicated.

In October Carillion said the restructuring charge would be around 拢40m.

Carillion cut up to 1,000 jobs from its energy services business during the second half of last year due to slow take-up in the Green Deal and Energy Company Obligation markets.

Carillion鈥檚 cuts prompted an unsympathetic response from energy minister Greg Barker, who told 好色先生TV in January Carillion and other firms using the Green Deal 鈥渘eed to look at their business model鈥�.

The firm said underlying pre-tax profit 鈥� which did not take into account the energy services restructuring charge 鈥� was down 13% to 拢174.7m, down from 拢220m, and its margin was unchanged at 5.6%.

Carillion said the drop in underlying pre-tax profit reflected the downscaling of its construction business and an increase in finance costs.

The contractor said it had completed the downscaling of its construction business to 鈥渁lign鈥� it to the reduced size of the market.

Carillion鈥檚 construction business in the UK and Canada shrank 17% to 拢1.1bn, down from 拢1.3bn, while underlying operating profit was down 39% to 拢44.4m, down from 拢72.4m.

Group revenue overall dropped 7% to 拢4.1bn, down from 拢4.4bn the previous year.

The results came as Carillion announced contract wins worth a combined 拢520m.

A Carillion joint venture in the UAE has been awarded a 拢150m contract by client Meraas to build the second phase of a leisure and retail development in Dubai.

The firm has also been appointed preferred bidder for support services contracts for three clients 鈥� Canada Natural Resources, Royal Bank of Scotland and Arqiva 鈥� worth 拢370m between them.

Carillion chairman, Philip Rogerson, said: 鈥淚n 2013, Carillion has continued to respond decisively to challenging market conditions, including completing the rescaling of its UK construction activities and the restructuring of its energy services business, which are now aligned in size to their respective markets, while continuing to develop and strengthen its positions in new and existing markets that offer good opportunities for growth. 

鈥淥verall, we expect market conditions to remain challenging in 2014, but with a strong order book, good revenue visibility and substantial pipeline of contract opportunities the Group is now well positioned for the future.鈥�