Trading Statement

Carillion PLC
7 January 2002

Carillion plc trading update

Carillion plc, the construction to services group, is providing this update on
trading for the year ended 31 December 2001, in advance of its preliminary
results announcement on 13 March 2002.

Overall trading in the second half of the year continued to meet our
expectations and we therefore expect the Group's full year result to be in
line with the current consensus forecast.

We have made good progress with our strategy for changing the Group's business
mix by continuing to develop leading market positions in our growth sectors of
Private Finance, Infrastructure Management and Facilities Management, while
maintaining leading positions in our construction markets where we continue to
focus on higher added value work for long term key customers.

Consequently, the proportion of the Group's profit in 2001 coming from our
investments in Private Finance concessions and our Infrastructure Management
and Business Services activities, is expected to be greater than that coming
from Construction Services. The improved cash inflow from operating activities
achieved in the first half of the year continued in the second half.

Our strategic progress is evident in the strength and quality of our order
book, which has again increased to a new record level of some £5.0 billion,
with over 80 per cent of orders in our growth sectors and over 60 per cent for
2003 and beyond.

In line with the objectives announced at the half year, we are also making
good progress with implementation of the two Business Improvement Programmes
launched during 2001. As announced at the half year, there will be a second
half exceptional operating charge of £10 million for the restructuring
associated with these programmes.

Looking forward, despite global and domestic economic uncertainties our main
markets are still growing or firm. Of the fifteen Private Finance projects we
have financially closed to date, eleven are now operating very successfully
and construction of the remaining four is progressing well. Bidding activity
for new projects continues at a high level in response to strong market
demand.

In rail, we have not experienced any adverse effects as a result of the
decision to place Railtrack in Railway Administration and we are confident of
growth in both the rail and road infrastructure management markets in 2002,
which will provide further opportunities to build upon our success in 2001.
The outlook in the facilities management and outsourcing markets that we are
targeting is also for continuing growth. Monteray's contract to supply
facilities management services to BT is performing well and discussions about
the future provision of these services to Telereal, continue to be positive.

Our construction markets in commercial building and infrastructure continue to
offer selective opportunities for higher added value work and we therefore
expect the overall level of our contracting activities to remain broadly
constant in 2002.

Therefore, with the benefits of our Business Improvement Programmes yet to
come and a record order book increasing in quality and length, the Group is
now in a strong position to make good progress in 2002.

In order to bring greater consistency and clarity to the way we report our
results and to facilitate benchmarking, we will in future report all
activities of a similar nature in the same segment. Starting with our
preliminary results in March, we will have three new reporting segments, as
follows.

Investments: Private Finance concessions in which Carillion has equity
investments.

Business Services: including rail and road infrastructure services and
facilities management.

Construction Services: all contracting and related activities in building and
infrastructure, both on traditional and Private Finance projects.

To assist in understanding the effect of these changes, turnover and operating
profit (before exceptional items) in 1999 and 2000 is shown for each new
segment in the Table below.

                                        2000                      1999

                            Turnover      Operating       Turnover  Operating
                                          Profit                    Profit
                             £m           £m              £m        £m

Construction Services       1487.5        25.7            1434.5    28.2

Business Services           524.9         22.8            452.5     19.1

Investments                 25.8          4.9             17.3      0.3

Internal Trading            (129.2)                       (102.0)

Head Office                               (8.2)                     (6.3)

Total                       1909.0        45.2            1802.3    41.3



Carillion Chief Executive John McDonough and Finance Director Chris Girling
will host a telephone conference call on this statement at 0900 today (7
January 2002) The number to call to join the conference is 0208 515 2370.

For further information

Chris Girling     Finance Director               01902 422431

John Denning      Director of Corporate Affairs  01902 316426