The first-half revenue of 拢2,156.8m was lower than the 拢2,453.5m achieved in the first half of 2011. Underlying profit increased by 8% to 拢80.7m from 拢74.4m as a result of an increase in total operating margin to 4.1% from last year鈥檚 3.3%. Carillion said that this is in line with a focus on cost management and selective approach to the contracts for which its bids.聽聽
The drop in revenue was primarily due to the planned re-scaling of UK construction activities and the timing of project awards in the Middle East. Middle East revenue is expected to be second-half weighted, partially offset by growth in support services. Revenue in the full year is also expected to be lower than in 2011, as the effect of re-scaling UK construction to align with the smaller market will more than offset growth in support services.
"Carillion delivered a robust first-half performance, in line with the Board's expectations, despite market conditions remaining challenging,鈥� said Carillion chairman Philip Rogerson.聽 鈥淕iven the strength of our business model, order book and pipeline of contract opportunities, we remain on track to deliver full-year results in line with expectations and to achieve our medium-term targets, namely to deliver growth in support services and to double our annual revenues in the Middle East and in Canada in the five-year period to 2015, in each case to around 拢1 billion."
Underlying profit before tax increased by 1% to 拢73.1m, after a 拢5.7m increase in the group's net financial expense, 拢3.3m of which related to an increase in the group's pension scheme interest charge.聽聽
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