H1 revenue expected to be similar to that in 2016 at approximately Â£2.5bn.
Â·Â Â Â Â Â Â H1 operating profit lower than expectations primarily due to phasing of Public Private Partnerships (PPP) equity disposals, which are now expected to be in H2.
Â·Â Â Â Â Â Â Strong work-winning performance, with Â£2.6bn of new work secured in H1 - Â£2.1bn in support services.
Â·Â Â Â Â Â Â Progress made against strategic objectives set at full year results, with cost reduction underway and disposal of 50 per cent of the economic interest in the Group's business in Oman, Carillion Alawi, for an immediate cash consideration of Â£12.8m.
Â·Â Â Â Â Â Â Deterioration in cash flows on a select number of construction contracts led the Board to undertake an enhanced review of all of the Group's material contracts, with the support of KPMG and its contracts specialists, as part of the new Group Finance Director's wider balance sheet review.
Â·Â Â Â Â Â Â This review has resulted in an expected contract provision of Â£845m at 30 June 2017, of which Â£375m relates to the UK (majority three PPP projects) and Â£470m to overseas markets, the majority of which relates to exiting markets in the Middle East and Canada.Â The associated future net cash outflows in respect of these contracts is Â£100m-Â£150m (primarily in 2017 and 2018).
Â·Â Â Â Â Â Â Deterioration in cash flows on construction contracts, combined with a working capital outflow due to a higher than normal number of construction contracts completing and not being replaced by new contract starts, means H1 average net borrowing is now expected to be Â£695m (Full year: 2016: Â£586.5m).
Â·Â Â Â Â Â Â Disposals to exit non-core markets and geographies to raise up to a further Â£125m1 in the next 12 months.
Â·Â Â Â Â Â Â Â Further annual cost savings to be quantified as part of the strategic and operational review.
Â·Â Â Â Â Â Â Â Maximising the recovery of receivables.
Â·Â Â Â Â Â Â The Board announces today that it is undertaking a comprehensive review of the business and the capital structure, with all options to optimise value for the benefit of shareholders under consideration. An update on the Board's review of the business and capital structure will be provided at the Group's interim results, in September.
Â·Â Â Â Â Â Â Significant actions already taken to reposition the business.
Â·Â Â Â Â Â Â Exit from construction PPP projects.
Â·Â Â Â Â Â Â Exit from construction markets in Qatar, the Kingdom of Saudi Arabia and Egypt.
Â·Â Â Â Â Â Â Only undertaking future construction work on a highly selective basis and via lower-risk procurement routes.
The announcement contains inside information.Â The person responsible for the release of this announcement on behalf of Carillion plc is Zafar Khan, Group Finance Director.