* FY underlying pretax profit down 13 pct at 174.7 million
* Revenue down 7 percent at 4.1 billion stg
* Wins new contracts worth more than 520 mln stg
* Has book of orders and probable business of 18 bln stg
* Shares up 1 pct at 381.9p, hit highest since May 2011
(Adds CEO, analyst comments, background)
By Li-mei Hoang
LONDON, March 5 UK support services and
construction firm Carillion has unveiled a batch of
multi-million pound contracts and a bigger focus on its
expanding facilities management division, helping send its
shares to a near three-year high.
Carillion, which maintains British railways, roads and
military bases, said it planned to diversify its facilities
management or support services business into sectors such as
oil, power distribution and highways maintenance.
"The areas that we are focusing on for growth in 2014 are
around the diversifications in support services," Chief
Executive Richard Howson told Reuters on Wednesday.
"There will be more effort and investment, bidding for work
in the oil and gas support services sector, particularly in the
Middle East and in Canada."
Shares in Carillion were up 1 percent at 381.9 pence by 1115
GMT, after rising as high as 395p, their highest since May 2011.
The group said it had won new contracts worth more than 520
million pounds - including a five-year deal to help maintain
Royal Bank of Scotland branches - and said it had a book
of orders and probable business of 18.0 billion pounds.
"We've had a good performance in challenging markets, we
have completed the rescaling of our construction business and we
expect revenue growth in all three of our reporting segments
during 2014 onwards," said Howson.
He said he also wanted to capitalise on the potential in the
group's construction and support services business in the Middle
East in the next few years.
"We are targeting growth in revenue over the next five or
six years towards 1 billion pounds," Howson said, citing
opportunities like the soccer World Cup in Qatar in 2022 and the
World Expo in 2020 in Dubai.
"These events create huge amounts of infrastructure and
social infrastructure investment ... and we will benefit from
those as indeed we have done in the past."
Oriel Securities analyst Hector Forsythe said: "We expect
each of the operating units to show growth in 2014, supported by
positive underlying progress in the order book and opportunities
The London-listed company has scaled back its energy
services and British construction divisions, a move that
contributed to a 13 percent fall in full-year adjusted pretax
profit, broadly as expected.
Underlying pretax profit fell 13 percent to 174.7 million on
revenue down 7 percent at 4.1 billion pounds.
($1 = 0.5998 British pounds)
(Additional reporting by Paul Sandle; Editing by Sarah Young
and David Holmes)