A bulging orderbook has prompted construction and services group Carillion to predict a healthy outlook in coming months.

The group said that by the end of June, contracts worth £2.45 billion had been signed, around £500 million more than at the same time last year. Carillion's railway business did well, securing a £200 million order from Railtrack, the organisation responsible for the UK's railway infrastructure. A £500 million, five-year facilities management contract was signed with British Telecom to look after its 8,500 properties across the country. A further £450 million was secured by Carillion through projects bankrolled by the Government's Private Finance Initiative, including the new GCHQ building. The favourable economy also helped to boost turnover in the first half of 2000 to £926 million, a six per cent increase on 1999.

But bad news from Carillion's services division saw turnover in this division down by 16 per cent to £132 million, due to a poor performance by Crown House Engineering.

Before exceptional items, group operating pre-tax profits rose 13 per cent to £15.8 million.

Interim dividends to shareholders rose from 1.3p to 1.34p.