Carillion confident that order book and contract opportunities are strong

As Carillion updates the market, Graham Spooner, investment research analyst at The Share Centre, explains what it means for investors.

“UK construction group Carillion posted an upbeat trading statement this morning ahead of its half yearly results due in August. It highlights revenue and margin growth in support services and looking ahead it is confident that its order book and pipeline of contract opportunities are strong. The company has today announced new contracts with the Northern Ireland Housing Executive and Petroleum Development Oman.

“Carillion points out that Brexit creates uncertainty for the UK economy as a whole but highlights that it has no significant operations in Europe. Ahead of the vote it undertook an impact assessment and has put in place robust plans to manage the outcome.

“Carillion has long been our favoured stock in the sector, but the Brexit vote has added an increased amount of uncertainty. For the time being we would recommend no more than a medium to higher risk ‘hold’.”