Carillion : Annual results for the year ended 31 December 2014

March 2014

•  Financial performance reflects selective approach to choosing contracts in challenging markets 

-    Revenue similar to that in 2013, notwithstanding foreign exchange headwinds

-  Underlying profit from operations(1) increased slightly after improved margin performances in support services and Middle East construction services, with overall Group margin maintained at 5.6%

- Underlying profit before taxation(1) and underlying earnings per share(1) marginally reduced, reflecting the planned reduction in the sale of equity investments in Public Private Partnership projects

-  Reported profit before taxation and basic earnings per share both increased substantially, due to lower non-recurring operating items

•      Net borrowing reduced in line with expectations

-    Net borrowing reduced to £177.3 million (2013: £215.2 million), despite investing £38.5 million in business acquisitions

-   Strong cash performance with underlying cash flow from operations(1) representing 119% of underlying profit from operations(1) (2013: 75%)

-   £1.3 billion of committed funding and a strong balance sheet to support strategy for growth over the medium term

•   Strong work-winning performance

- £5.1 billion of new orders and probable orders in the year (2013: £4.9 billion)

-      High-quality order book plus probable orders totalling £18.6 billion (2013: £18.0 billion)

-      Record revenue visibility(2) of 85% for 2015 (2013: 81% for 2014)

-      Framework contracts worth up to £2.0 billion, which are not included in the order book or probable orders

-      Pipeline of contract opportunities increased to £39.2 billion (2013: £37.5 billion)

•    Proposed full-year dividend increased by 1% to 17.75p (2013: 17.50p) 

(1)    The underlying results stated above are based on the definitions included in the key financial figures on page 3.

(2)  Based on expected revenue and secure and probable orders, which exclude variable work, frameworks and re-bids.

Carillion Chairman,Philip Green,commented: "In 2014, our markets remained challenging and we continued to be very selectivein choosing the contracts for which we bid in order to maintain margin discipline, which continues to be a key element of our strategy.Looking forward, we expect the steady improvement in our markets that began in 2014 to continue in 2015, subject to a sustainedmacro-economic recovery. We have also continued to strengthen the Group's position in growth markets, notably in support servicesthrough a further bolt-on acquisition in Canada. Therefore, with strong cash flow, a high-quality order book, record revenue visibilityand a growing pipeline of contract opportunities, we continue to believe the Group is well-positioned to make progress over themedium term."