Carillion PLC’s (LON:CLLN) shares have descended today after the building support services firm posted a drop in full year earnings, reflecting a decline in profit from public private partnership projects and Middle East construction services.
Profit before tax fell 5% to £146.7mln in the year to 31 December 2016 from £155.1mln a year earlier. Basic earnings per share dipped 6% to 28.9p from 30.9p.
Total revenue rose 14% to £5.2bn from £4.6bn, led by growth in support services.
New orders and probable orders increased to £4.8bn from £3.7bn.
The group, which maintains railways, roads and military bases, proposed a full year dividend of 18.45p, up 1% on the prior year’s 18.25p.
"In 2016, Carillion's performance was led by revenue growth and an increased margin in support services, together with good cash flow,” said chairman Philip Green.
“Given the size and quality of our order book and pipeline of contract opportunities, our customer-focused culture and integrated business model, we have a good platform from which to develop the business in 2017.”
He said Carillion plans to step up cost reductions to lower average net borrowing and will focus on markets and sectors with profitable contracts.
In December, the company cautioned that the pace of new orders had slowed in the second half due to a spending delay by the government following June’s Brexit vote.
Shares fell 4.93% to 208.20p in morning trading.