Carillion plc trading update

Carillion PLC
05 July 2006



Carillion plc

Trading update

Support services and construction company Carillion plc is providing this update
on trading in the first six months of 2006, ahead of its interim results
announcement on 6 September 2006.

Overall, trading in the first half of 2006 has been strong and in line with our
expectations.

This is also reflected in the value of our order book and framework contracts,
which has increased from £7 billion at December 2005 to around £13 billion at
June 2006, following a number of major first half successes. The most notable of
these was achieving financial close on the £12 billion Allenby Connaught PPP
project for the Ministry of Defence to transform Army garrisons across the South
of England, of which some £4.9 billion has been included in our order book to
date.

The integration of Carillion and Mowlem is progressing well. As announced on 24
April, cost synergies are running ahead of original targets. The new business
structure, established immediately after acquisition, is operating well, based
upon Carillion's risk management procedures and supported by our values. The
contracts for which revised fair value adjustments were announced on 24 April
2006, are progressing in line with expectations.

Disposals of non-core businesses acquired with Mowlem are running ahead of
schedule, with Charter, Edgar Allen and MESG, all sold in the first half of
2006. In addition, we have reached agreement on the sale of Barclay Mowlem on
which completion is expected shortly. Cash generation remains very strong and
net debt was under £130 million at 30 June 2006.

Our support services markets remain buoyant, with the exception of UK rail
infrastructure, where activity levels have declined and on which we have
commented previously. Public sector markets, notably defence, education and
health, continue to offer opportunities for growth, particularly for integrated
solutions that combine our facilities management skills and resources with those
of private finance, design, construction and lifetime asset management. The
outlook in the private sector facilities management and services market is also
positive.

Our UK and international construction markets remain strong. We continue to take
a selective approach to these markets, targeting opportunities that should
enable us to increase margins over time, particularly in the UK Regional
Building and Regional Civil Engineering businesses acquired with Mowlem.

Our portfolio of equity investments in financially closed projects continues to
grow and generate significant returns. The book value of equity already invested
in, and committed to, financially closed projects increased from £60 million at
December 2005 to £173 million at June 2006, as a result of acquiring Mowlem's
PPP portfolio and reaching financial close on the Allenby Connaught project.
Secondary market demand for PPP equity is strong and the value of good quality
equity has increased substantially. Carillion remains focused on maximising
value, in line with our policy of retaining equity investments unless we can
generate greater economic value by selling them.

With a large order book, strong cash generation and trading conditions expected
to remain positive in the second half of 2006, Carillion remains firmly on track
to achieve our expectations for the full year.
Carillion will host a conference call for analysts and investors on this
statement at 0845 today, 5 July 2006.

For further information contact John Denning Director Group Corporate Affairs
01902 316426





                      This information is provided by RNS
            The company news service from the London Stock Exchange