Carillion confirms McAlpine acquisition will not impact profits

Source: Construction Digital

Date :19/05/2008 15:56:57

Carillion plc has said that its recent acquisition of Alfred McAlpine plc will not impact on the group’s total net assets, profits or cash flow.

The company will include in the acquired balance sheet of Alfred McAlpine plc its assessment of the fair value of the net assets obtained with that business. Any differences between these fair values and the amount at which the assets were recorded in the balance sheet are to be treated as pre-acquisition adjustments.

Cost savings

Only post acquisition restructuring costs, previously announced as £30 million, are to be deducted from Carillion’s profits and net assets. The group has said such amounts will be treated as ‘exceptional’ charges and will have no impact on underlying results.

Earlier this month, Carillion reported it has made progress towards delivering the £30 million of annualised cost savings it expects to achieve from the acquisition, with over 60 percent of these savings already identified.

The company has confirmed that it continues to expect to make strong progress in 2008 and deliver materially enhanced earnings in 2009.

Carillion remains on track to meet its objective of achieving net borrowing of £300 million by the year end.

May 19, 2008