Chairman's Statement

Carillion PLC
24 May 2000


Carillion plc Annual General Meeting -
Chairman's statement


Speaking at the Carillion plc Annual General Meeting, in
Birmingham, today, Chairman Sir Neville Simms, said,

'Over the past three years, we have been rapidly repositioning
our business towards the growth segments of Private Finance,
Infrastructure Management and Services, whilst retaining, and
applying more selectively, the best of our traditional
construction skills to develop a growing stream of
sustainable, higher quality earnings.

'In this context our demerger from Tarmac in July 1999 was a
major milestone. As an independent company, Carillion is now
more focused and better able to pursue its strategy of
repositioning for growth - a strategy that has seen the
proportion of our turnover from Private Finance,
Infrastructure Management and Services reach 36%, with a
contribution to total operating profit of around 50%.  Significantly,
over recent years our order book in these segments has also
been growing rapidly and by the end of 1999 it was around £1.4
billion, some 64% of our record year-end total order book of
£2.2 billion.

'At the same time, in Building and Capital Projects, we have
focused increasingly on our key customers, cost reduction,
greater project selectivity and negotiated work in partnership
and alliance.

'We therefore entered 2000 with a strong platform from which
to continue the development of the business.  Since the start
of the year, we have had further important successes in our
growth segments.  These include the £140 million Preston Area
maintenance contract awarded by Railtrack, achieving financial
close on the £170 million Nottingham Express Transit PFI
project and leading the consortium selected by BT as its
preferred supplier for a £500 million facilities management
contract, the largest private sector facilities management
contract to date, in the UK.

'As our repositioning continues, we are also following through
with our programmes to reduce overhead costs and improve our
operating performance.

'The UK economy continues to strengthen and demand in our
chosen markets remains good.  We therefore expect to make
further progress in the year ahead.'

For further information John Denning or John Davies 01902 316444