British building and support services firm Carillion Plc expects total revenue for the full year to be lower than last year's $5.4 billion pounds, citing the reduction in UK construction, the sale of non-core business and equity investments in Public Private Partnership (PPP) projects.
The company expects trading conditions to remain difficult, especially in its UK markets.
Carillion, however, said it sees continuing good growth in underlying pretax profit and earnings per share.
The strategic decision to reduce revenue in our UK construction business by one third over the next three years, has put us in a strong position to manage the impact of the reduction in capital investment by the UK Government over the next four years, Carillion said.
The company had announced re-scaling its UK construction business in line with its planned reduction in its annual revenue from around 1.8 billion pounds in 2009 to some 1.2 billion pounds by the end of 2012.
Carillion said it continues to have good revenue visibility and additions to its order book have so far exceeded 1 billion pounds in the second half of the year.
The company's PPP projects segment includes its equity returns on its investments in the defense, health, education, transport, secure and other government accommodation sectors.
Carillion said its portfolio of 26 investments in PPP projects continues to generate substantial value. About 74 million pounds has been invested in the portfolio to date and a further 110 million pounds will be invested.
Shares of Carillion ended Tuesday's trading at 354.80 pence on the London Stock Exchange.