UPDATE 1-Carillion sees stronger pipeline by year-end

Wed Dec 12, 2012 3:03am EST

* Trading for full year 2012 in line

* Wins 525 mln stg road contracts in Canada

* Wins 150 mln stg local council deal

* Expects pipeline to be larger than expected

LONDON, Dec 12 (Reuters) - Support services and construction firm Carillion PLC said on Wednesday that its pipeline of projects would be larger than previously estimated by the year-end, with overall trading in line with expectations.

In a pre-close trading update, the group, which maintains railways, roads and military bases, said that revenue for the full year would be down on 2011 as expected, principally due to the cutting back of its British construction business announced in May 2010.

It expects its pipeline of potential contract opportunities to be slightly higher than the 35 billion pounds ($56 billion)previously estimated by year-end.

The group has begun cashing in on its Public Private Partnership (PPP) projects, and said that it now plans to include the cash generated in its underlying profit numbers.

The PPP focus has been particularly strong in Canada, where it just acquired a 49 percent stake in support services business Bouchier Group for 23.75 million pounds.

It also announced new contract wins on Wednesday, including a 525 million pound deal to maintain highways in Canada, 475 million of which are contract renewals.

It also won a property services tie-up with Lancashire County Council worth 150 million pounds over 10 years.

The group said it expects an announcement on a 800 million pound project and facilities management contract for the Royal Liverpool Hospital soon. It is shortlisted for the deal.

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