Work winning

RNS Number : 7413Y

Carillion PLC

27 February 2013

 



27 February 2013

Carillion preferred bidder for £210 million of new work in the Middle East

Total new orders and probable orders for the Group of £650 million

Carillion has made a good start to 2013, winning new orders and probable orders in the first seven weeks of the year that are expected to be worth some £650 million.

In the Middle East we have secured probable orders worth approximately £210 million for projects in Oman, Abu Dhabi and Saudi Arabia, where we expect to begin delivering our first major project during 2013. 

In support services, we have won orders and probable orders worth some £280 million.  This includes facilities management contracts in the UK and Canada, a further highways maintenance contract in Canada and Energy Company Obligation (ECO) contracts in the UK.  These ECO contracts are initially worth some £75 million, but have significant potential for growth. 

In construction services (excluding the Middle East), we have secured new and probable orders worth approximately £160 million, for long-term public and private sector customers.

In line with our policy of selling equity in mature Public Private Partnership (PPP) projects, we have sold our investment in the Permanent Joint Headquarters, Northwood project.  This sale generated cash proceeds of £29.4 million, which represented a discount rate in line with the average seven per cent, at which we have been consistently selling PPP equity investments.  

Commenting, Carillion Chief Executive, Richard Howson, said: ''Although markets remain challenging, we have made a good start to the year in terms of new orders and probable orders and I am particularly pleased with our progress in the Middle East and in the ECO market.  We have also remained selective in terms of the contracts for which we bid in order to support margins, by focusing on contracts where we can use the breadth of our skills and the scale of our resources to differentiate our offering.    

The secondary market for PPP equity remains strong and continues to support our policy of selling investments in mature projects and reinvesting the proceeds in new projects".

For more information

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

Finsbury

James Murgatroyd or Gordon Simpson                                                     [phone]

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 2012 of some £4.4 billion, employs around 40,000 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 services.

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

 

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