The company is a leading integrated support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities. Carillion provides expertise in commercial and industrial building, refurbishment, civil engineering, road and rail construction and maintenance, mechanical and electrical services, facilities management and the UK's Private Finance Initiative - outsourcing government investment.
Carillion currently offers a dividend yield of over 6%, with a p/e of under 10, forecast dividend cover of 2.5, falling debt and good cash flow - what's not to like? Kevin Godbold of Motley Fool likes it "as a cautious buy, but it's worth bearing in mind their cyclical nature".
The Group had annual revenue in 2011 of some £5.1 billion, employs around 45,000 people and operates across the UK, in the Middle East and Canada. The Group has four business segments:
- Support services - including facilities management, facilities services, energy services, utility services, road maintenance, rail services and consultancy services
- Public Private Partnership (PPP) projects - including investing activities in PPP projects in Defence, Health, Education, Transport, Secure and other Government accommodation
- Middle East construction services - including building and civil engineering activities
- Construction services elsewhere - including building, civil engineering and developments activities in the UK and construction activities in Canada
- No surprises: first-half trading is in line with expectations despite market conditions remaining challenging; however this means that total revenue will be lower than in the first half of 2011
- Profitability is holding up: total operating margin is expected to increase
- Cash flow and balance sheet remain strong with net debt expected to be around £125m
- A further £20m of equity in Public Private Partnership (PPP) projects has been sold
- Strong order book: total first-half new orders and probable orders worth up to £2.2bn