Trading Statement

Carillion PLC
15 January 2007


15 January 2007

Trading update

Support services and construction company, Carillion plc, is providing this
update on trading in 2006 ahead of its preliminary results announcement on 7
March 2007.

Trading conditions in the second half of 2006 have remained positive, cash
generation continues to be strong and further good progress has been made with
the integration of the Carillion and Mowlem businesses, which is now
substantially complete. Consequently, Carillion expects to build on its good
first-half performance and deliver earnings ahead of the current consensus
forecast.

As a result of the Group's focus on cash management, average debt in 2006 is
expected to be around £110 million, well below the £200 million expected at the
time of acquiring Mowlem. Net debt at 31 December is expected to be
approximately £112 million.

The sale of eight equity investments in Public Private Partnership projects,
announced in our 2006 Interim Results statement, was successfully completed on
18 October and generated an exceptional profit of £22 million. As previously
announced, exceptional costs relating to the integration of Mowlem and the
restructuring of Carillion Rail are expected to be approximately £20 million.
Since the half-year, construction of the Exeter schools PPP project and Dublin
Port Tunnel have been completed and both are now operational.

The Group has continued to win substantial new orders in its chosen markets and
the value of the order book at 31 December is expected to be in the region of
£16 billion. In 2007, Carillion has announced a number of further successes,
including achieving financial close on South Ayrshire Schools PPP project, an
extension to the Regional Prime Central contract for the Ministry of Defence and
being appointed preferred bidder for the provision of community-based clinical
services in North London, under the Government's Independent Sector Treatment
Centre programme. These three projects are expected to generate around £325
million of revenue for the Group.

Therefore, with the outlook in the Group's main markets expected to remain
positive, the Board believes that Carillion is on track to deliver materially
enhanced earnings in 2007.

Carillion chief executive, John McDonough, will host a conference call on this
announcement for analysts and investors at 09.00 today. The telephone number to
join the conference call is 020 8515 2300.

For further information
John Denning, Director Group Corporate Affairs, Carillion plc on 01902 316426




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