Middle East drives Carillion

Support services firm Carillion remains on track to deliver results in line with expectations for 2012, thanks largely to a strong performance from its Middle East construction business.

"Our pipeline of contract opportunities remains strong and since the half year we have continued to win new orders and probable orders, notably in the Middle East where our businesses have won new and probable orders with a total value of £185m," the company said in its third quarter interim management statement.

It added that the largest of these contracts is a £113m deal to build a mixed use development for the Oman Public Authority for Social Insurance.

However, the firm warned that full-year revenue is expected to be lower than in 2011, largely due to the rescaling of its UK construction business due to the "shrinking UK market".

Nonetheless, Carillion said it remains on track to meet its targets of doubling annual revenues in the Middle East and Canada in the five years to 2015, in each country to around £1bn.