Carillion is planning to enter Qatar with its operations in the Middle East operations getting stronger.
The company’s half year’s turnover from the Middle East operation was up 78 per cent to £321.6 million, when it shifted from Dubai to Abu Dhabi.
The company also preparing itself for more orders from Qatar next year.
Richard Adam, Director Finance said: “It will be Carillion’s first move into Qatar. We are in discussions with a partner there and are looking at some work in early 2010. It is likely to be a mixed-use development.”
The turnover of Carillion’s Abu Dhabi, was up 17 times, from £10.9m during the first half of 2008 to £189.7m in the first half of this year. This increase has been attributed to its contract worth £275m for the construction of Marina Hotel, a part of the Abu Dhabi Grand Prix circuit.
The turnover from Dubai was £112.2 m in the first half of 2008; while, in the six months to 30 June 2009, it has been just £74m.
However, on the whole the pre-tax profits of Carillion steeply rose to 92 per cent in the first half of 2009.
It was £51.9m as compared to £27m in the last year. The total turnover increased 13 per cent to £2.7bn.
Carillion reduced its net borrowing to £146m, from £264.1m, last year; while it generated £114.4m during the half year.
Don Kenny, Executive director said: “Cash is the lifeblood of any business and we have been very successful at generating it in these difficult times.”
Carillion’s turnover in UK went down to 78 per cent; from 86 per cent; where as the turnover from Middle East was 12 percent; and 10 per cent from Canada.
The firm’s support services division performed the best and accounted for 45 per cent of the turnover, because of its strong customer, the public sector.
“It is boom time for delivery organizations, people who come in and drive change,” said Kenny.
“Whatever happens with the Government over the next 12 months, we foresee a need to make public processes more efficient, and take costs out through outsourcing,” commented Adam.
Carillion mentioned that it has orders worth £19.7bn, as on 30 June 2009, and expects new orders amounting to £2.9bn.
In the coming six months, Carillion shall start the preparatory work on its £1bn BT Openreach contract, which it secured last month. Under this contract, it shall maintain BT’s Openreach network of copper lines from the telephone exchange to residences of the public.
