Contractor predicts strong progress in 2010 as it posts 16% upturn in profit

Carillion has reported a 16% increase in 2009 profit to 拢182m, a figure which has been boosted by a strong performance in the Middle East.

In the group鈥檚 final results for the year ending 31 December 2009 it also revealed a 拢5.4bn turnover, up 4% on the figure in 2008, and an operating margin of 4% compared to 3.7% in 2008.

The firm said on Wednesday it had an order book of 拢17.7bn and forecast further progress in 2010.

Carillion, which generates much of its revenue from government work and public private partnership (PPP) projects, made an underlying pretax profit of 拢182.2m in 2009.

The results were buoyed by a strong performance in the Middle East which makes up 21% of the group鈥檚 total underlying operating profit following successful expansion into Abu Dhabi and a strong performance in Oman.

Carillion doubled its share of revenue from the Middle East businesses from 拢269m in 2006 to around 拢600m in 2009. In 2009, turnover increased by 19% to 拢554m.

A statement in the results read: 鈥淐ash flow has also remained strong with receipts from customers in 2009 of some 拢555m, which supported an increase in the dividend received from our Middle East businesses.鈥�

Carillion ended the year with net cash of 拢24.9m, compared with net borrowing at the end of 2008 of 拢226.7m.

It is paying a dividend of 14.6 pence, up 12%.

Shares in Carillion, which have increased by a third over the last year, closed at 286.8 pence on Tuesday, valuing the company at 拢1.14bn.

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