Carillion is a ‘buy’ on positive outlook

9th December 2015


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

In a pre-close 2015 trading statement Carillion sounded optimistic on its outlook, as it sees improvements in market conditions in the UK and announces new business worth £1bn. Investors should be aware that Carillion also expects its full year operating profits to be in line with its half year guidance and for revenues to grow strongly.

The solid order book provides a good level of visibility, and for a support services company the current yield of 5.9%, allied to an undemanding valuation, is attractive. Carillion has long been our favoured stock in the sector and we currently class it as a medium risk long-term ‘buy’ for an income geared portfolio.



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