Carillion feeling positive following split from EU

Multinational facilities management and construction services company Carillion have released a half-year trading statement which suggests that Brexit will not affect them in the short term, although the long term changes are yet to be seen.

The statement highlighted that despite the economic uncertainty prior to the referendum and the subsequent fallout afterward, their support services have experienced revenue and margin growth and their work winning, order book and pipeline of contract opportunities are still strong.

Overall, the Group remains on track to make further progress in 2016.

The statement said “We continue to expect our full-year performance to be led by revenue and margin growth in support services, with Public Private Partnership projects, Middle East construction services and construction services excluding the Middle East also performing in line with expectations. Therefore, with revenue visibility for the full year of 97 per cent and a strong pipeline of further contract opportunities, the Group remains on track to make further progress in 2016.

“The referendum vote in favour of the UK leaving the European Union has obviously created uncertainty for the UK economy as a whole and therefore for businesses generally, including Carillion, and it is clearly too early to predict the extent to which businesses will be impacted by this result. However, Carillion has no significant operations in Mainland Europe and prior to the referendum we undertook extensive work to assess the possible impact on our business of a vote to leave and we have put in place robust plans to manage this outcome.”