Carillion to issue trading statement

Carillion will announce a trading update on Thursday 2 October. This will be its first statement since the company dropped its takeover attempt of Balfour Beatty.

A Carillion construction site
Source: Bloomberg

Carillion is trading at £3.04; the share price is down 4% since the company posted its first-half results in August, where its pre-tax profits rose by 5% and net debt declined by nearly 25%.

The construction and support services company increased its interim dividend by 2% to 5.6p. The group’s chairman, Philip Green, stated the company’s performance is broadly in line with expectations, and the outlook for the full year remains ‘unchanged’.

It is due to release its full-year figures on 5 March 2015, and the consensus is for revenue of £3.91 billion and operating profit of £203 million. Equity analysts are bullish on the stock. Out of the 15 ratings, eight are buys, five are holds and two are sells.

Carillion made a number of attempts to takeover Balfour Beatty, and now that Balfour has issued a profit warning, which has driven its share price down 22% since yesterday, we may see renewed interest from Carillion.

If Carillion drops below £3 per share, the next level down is £2.80. If the trading update is positive the stock could target £3.44.

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