Trading Statement

Carillion PLC
10 July 2003


Carillion plc - trading update



Carillion plc, the business and construction services company, is providing this
update on trading for the six months ended 30 June 2003, in advance of its
interim results announcement on 10 September 2003.



Profit in Construction Services for the first six months of 2003 is likely to be
£10 million lower than expectations due to difficulties relating to the delivery
of the Nottingham Express Transit ('NET') PPP project.



However, Business Services had a strong first half with volumes ahead of our
expectations.  This trend is likely to continue for the remainder of 2003, which
should enable the Group to deliver full year profit before tax and goodwill of
not less than that achieved in 2002.



Debt at the half year is expected to be around £25 million, which is slightly
better than anticipated at the time of our Preliminary Results announcement in
March 2003.  We continue to expect a cash inflow in the second half and a
positive net cash position at the year-end.



The Group's order book remains strong and we remain encouraged by prospects in
our key markets.



Carillion is an equity partner in the consortium responsible for NET and
Carillion Construction is the provider of the infrastructure element. The
overall delivery costs of this complex project, which is close to completion,
have increased and the full effect of the additional costs incurred will be
recognised in our first half results.  Potential recoveries related to these
increased costs have not yet been recognised.



Carillion withdrew from tendering for further PPP light rail projects in 2002,
as the risk profile of such projects is not compatible with our strategy for
risk management.



The refinancing of the Darent Valley Hospital was completed earlier this year
and has generated £12 million of cash for Carillion.



Carillion Chief Executive, John McDonough and Finance Director, Chris Girling,
will host a telephone conversation call on this statement at 0800 today.  The
number to call to join the conference is 0208 515 2303.



For further information

John Denning, Director Corporate Affairs 01902 316444




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