Carillion sees 'steady' PPP pipeline

Support services giant Carillion expects to see a “modest, but steady flow of pipeline opportunities” in PPP schemes across the UK and Canada.

Publishing a trading update ahead of its full year results, the firm said health and transport PPP schemes are likely to be the most fruitful sectors, adding that it expects strong revenue growth in its PPP sector for 2016.

This follows its “good work winning performance in 2015, when we achieved financial close on four new PPP projects and were selected as the preferred bidder for a fifth, which financially closed in July 2016”, Carillion said.

“Overall, our portfolio of investments in PPP projects continues to perform well,” the firm continued. “However, as previously indicated, we expect underlying operating profit in this segment to reduce, because profit from equity sales will be lower than that in 2015.”

Carillion added that it continues to pursue PPP opportunities in the Middle East, most notably a major hospital scheme in Oman for which it signed a memorandum of understanding earlier this year.

Across its business, Carillion said it expects new orders and probable new orders to reach £4.5bn in 2016, adding that it expects to see strong growth in total revenue and an increase in operating profit.