Re Contract

RNS Number : 8870B

Carillion PLC

12 October 2015

 



12 October 2015

Carillion wins new business worth some £1.7 billion since the half year

Carillion has signed contracts, secured preferred bidder positions and been awarded frameworks, worth some £1.7 billion, since 30 June 2015.  Within this total are a number of major contract successes.

In UK infrastructure services, Carillion and Carillion joint ventures have been selected by Network Rail for a number of frameworks and Early Contractor Involvement contracts from which Carillion expects to generate over £400 million of revenue.  These include the Midland Main Line Electrification project, which was recently "unpaused" by the UK Government, the Northwest Electrification project and the electrification of the Schotts line in Scotland.

In UK Construction, Carillion has secured contracts and preferred bidder positions that are expected to be worth £311 million.  These include the recently announced A14 upgrade, which is being delivered by a Carillion joint venture for Highways England and which is expected to be worth some £146 million to Carillion, together with preferred bidder positions for a £90 million contract to build the Great Arundel Court development on London's Embankment and a £75 million schools contract for Peterborough City Council.

As announced on 11 August 2015, a Carillion joint venture has been selected as the preferred bidder for the Midland Metropolitan Hospital Public Private Partnership (PPP) project in Birmingham that is expected to generate over £600 million of revenue for Carillion.  In Canada, since the half year a Carillion joint venture has been selected as the preferred bidder for the Stanton Hospital PPP project in Northwest Territories, on which it has now reached financial close: Carillion will invest approximately £4 million of equity in this project, which is expected to generate total revenue for Carillion of over £220 million.  Also in Canada, a Carillion joint venture has achieved financial close on the North Battleford⁽¹⁾  PPP hospital in Saskatchewan, having been selected as the preferred bidder for the project in the first half of 2015: Carillion will invest approximately £4 million of equity in this project, which is expected to generate total revenue for Carillion of over £140 million.

In the Middle East, Al Futtaim Carillion, our joint venture business in the UAE, has been selected as the preferred bidder for two commercial development projects in Dubai, which are worth approximately £90 million to Carillion.  

Commenting, Carillion Chief Executive, Richard Howson, said: "As we expected, the pace of work winning in the second half of the year has started to pick up.  Since the half year, we have secured contracts, preferred bidder positions and framework agreements that are expected to be worth around £1.7 billion.  With cash flow remaining healthy and these recent contract successes, we remain confident of achieving this year's targets, including ending the year with strong revenue visibility for 2016." 

^{(1)    North Battelford Hospital was classified as a probable order at 30 June 2015}

Notes to Editors

Carillion is a leading integrated support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities.  The Group had annual revenue in 2014 of some £4.1 billion, employs around 46,000 people and operates across the UK, in the Middle East and Canada. 

The Group has four business segments:

Support services - this includes facilities management, facilities services, energy services, utility services, road maintenance, rail services and consultancy businesses in the UK, Canada and the Middle East.

Public Private Partnership (PPP) projects - this includes investing activities in PPP projects for Government buildings and infrastructure, mainly in the Defence, Health, Education, Transport and Secure accommodation sectors.

Middle East construction services - this includes building and civil engineering activities in the Middle East.

Construction services (excluding the Middle East) - this includes building, civil engineering and developments activities in the UK and construction activities in Canada.

This and other Carillion news releases can be found at www.carillionplc.com

For more information 

John Denning, Director Group Corporate Affairs, Carillion plc                         + 44 (0) 1902 316426

Finsbury

James Murgatroyd or Gordon Simpson                                                        + 44 (0) 207 2513801

 

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