Carillion tells shareholders to expect a good year

Carillion reassured investors at its annual general meeting on Wednesday, saying it has traded in line with internal expectations in the year-to-date.

The FTSE 250 company pointed particularly to its expectation that 2016 performance will be led by improved revenue and margin in its support services business, following a number of new contracts in 2015.

“New orders secured in 2016 have increased revenue visibility for the current year to 94%, up from 84% at 31 December 2015,” Carillion’s board stated.

“Therefore, with our strong, high-quality order book and substantial pipeline of contract opportunities, we continue to expect the group to make further progress in 2016.”

Carillion’s board said it also continues to expect profit in 2016 to revert to a greater second half weighting, with its targets for revenue, margins and cash flow unchanged an in line with the guidance it gave in its 2015 results.