LONDON (ShareCast) - (ShareCast News) - In a bullish half-year statement, Carillion said, despite a slip in the size of its order book due to the UK election, it generated a significant increase in revenue and expected to hit its full year profit and earnings forecasts.
The FTSE 250 group said it was on track to deliver healthy revenue growth in the full year, with profit and earnings in line with expectations.

The steady improvements in market conditions seen in 2014 have continued in 2015, with a number of major contracts won in 2014 going live, notably in support services.

However Carillion admitted that the pace of new order intake slowed in the first half of 2015 due the effect of the UK general election on public sector contract awards.

The group began the 2015 financial year with secured and probable orders worth £18.6bn, providing record revenue visibility of 85% and at the half year expects revenue visibility for 2015 to have increased to around 96% and for secured and probable orders to have shrunk to approximately £17bn, although decisions are pending on "a number of significant UK public sector contract awards".

The group's pipeline of specific contract opportunities at the half-year period is expected to have increased to over £40bn from £39.2bn six months before.

"Having entered 2015 with record revenue visibility, the group continues to be in a strong position to deal with the inevitable effects of the UK general election on the pace of contract awards, which has slowed, as expected, in the first half of the year," Carillion said in its outlook statement.

"Therefore, with a strong order book, a growing pipeline of contract opportunities and the prospect of market conditions continuing to improve, our expectations for 2015 and for the medium-term remain unchanged."

Shares in Carillion were up 2.6% to 360.67p by 08:35 on Tuesday.

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