Carillion announces new business worth around £1bn
9 December 2015
Carillion announces new business worth around £1 billion
In support services, Carillion has been awarded new contracts or is in one-to-one negotiations on contracts with an estimated total value to Carillion of over £350 million. These include new facilities management contracts or contract extensions in the UK for Direct Line Group, Verizon and Virgin Media. In Canada, Outland, the business we acquired in May 2015, is in one-to-one negotiations with customers as their preferred delivery partner for a number of new contracts and contract extensions to provide remote site accommodation and associated services. Carillion Joint Ventures are also in one-to-one negotiations to deliver further support services work for the Defence Infrastructure Organisation and for Openreach to deliver a substantial proportion of its Superfast Extension Programme to extend Superfast Broadband to 95 per cent of the UK by the end of 2017.
In construction, Carillion has secured preferred delivery partner positions and new contracts worth over £550 million. These include further projects for the Defence Infrastructure Organisation, together with projects for the Paradise Circus Limited Partnership in Birmingham and the Kings Cross Central Limited Partnership in London, where for both of these customers Argent is acting as development manager.
A Carillion Joint Venture has been selected as the preferred bidder by the National Treasury Management Agency in the Republic of Ireland to deliver Bundle Five of its schools Public Private Partnership programme, which comprises five schools located in counties Meath, Carlow, Wicklow and Wexford. As well as delivering design, construction and support services over the 27-year concession period, the values of which are included in the totals above, Carillion also expects to invest equity in the project that will also generate significant concession revenue.
Commenting, Carillion Chief Executive, Richard Howson, said: ''I am pleased to say that the pace of work winning in the second half of the year has continued to pick up, as we expected. Much of the £1 billion of new work announced today reflects our continuing success in winning repeat work for long-term customers, consistent with our selective approach to contracts and margins. We also continue to see some improvements in market conditions, especially in the UK, and following the UK Government's spending review, we expect to see further opportunities for outsourcing and capital projects over the medium term".
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 2014 of some £4.1 billion, employs around 46,000 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
For more information
John Denning, Director Group Corporate Affairs, Carillion plc + 44 (0) 1902 316426
Finsbury
James Murgatroyd or Gordon Simpson +44 (0) 207 2513801
This information is provided by RNS
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