Sector re-classification
FTSE/Dow Jones changes Carillion's classification to Business Support Services and Carillion sells equity in four Public Private Partnership (PPP) projects
Re-classification to Business Support Services
The Board of Carillion has been advised by the FTSE/Dow Jones Indexes that Carillion's Industry Classification Benchmark (ICB) will be reclassified from sub-sector Heavy Construction to Business Support Services. This change will be implemented after the UK market closes on Friday 20 June with Carillion's first day of trading in the Business Support Services sector being Monday 23 June.
This move reflects the material change in composition of Carillion's business activities in line with the Group's strategy for growth, which, following the acquisition of Alfred McAlpine earlier this year, has created a leading UK support services businesses.
As announced on 19 May 2008, Carillion will be hosting a presentation for analysts and investors on its support services business and on its pre-close update on trading, on 30 June 2008.
Sale of equity in Public Private Partnership projects
Carillion plc has sold equity investments in four fully operational Public Private Partnership projects, generating cash proceeds of £35.9 million, which reflected an average discount rate of below 5.5 per cent.
The four PPP projects in which Carillion has sold its investments are Lewisham Hospital, James Cook University Hospital, Barnsley Schools and Redcar and Cleveland Schools.
Following this latest equity sale, Carillion has 21 financially closed projects in which it has invested, or has commitments to invest, approximately £175 million.
In addition, Carillion has a strong pipeline of projects for which it is either the preferred bidder or shortlisted, which together have a potential equity requirement of up to £80 million. Beyond that Carillion expects continuing opportunities to win further projects in the UK and Canada, which have PPP programmes in Carillion's key market sectors.
Commenting on the sale, Carillion Chief Executive, John McDonough, said: 'This sale of PPP equity investments has once again demonstrated the value we are generating through Carillion's ability to provide fully integrated solutions for PPP projects, including project finance, design, construction, maintenance and whole-life asset management, which helps us to win projects and deliver them successfully into the operational phase.'
For further information contact
John Denning, Director Group Corporate Affairs, Carillion plc 01902 316426
Details of the four projects in which equity investments have been sold can be found on Carillion's website at www.carillionplc.com/privatefinance
The equity investments were purchased by Innisfree, Land Securities Trillium ('LST'), Barclays European Infrastructure Fund and Robertson Capital Projects.
Carillion is one of the UK's leading support services, Public Private Partnership project and construction companies. The Group has annual revenue of around £5 billion, employs some 50,000 people and operates across the UK, in the Middle East, Canada and the Caribbean.
In the UK, Carillion's principal market sectors are Defence, Education, Health, Facilities Management & Services, Rail, Roads, Building, Civil Engineering and Utilities Services.
In the Middle East, Carillion's principal market sectors are Construction and Facilities Management. In Canada and the Caribbean, the Group's main sectors are Health, Roads Maintenance and Construction.
Carillion has a substantial portfolio of equity investments in Public Private Partnership projects, particularly in the Defence, Education, Health and Transport sectors.
This and other Carillion news releases can be found at www.carillionplc.com
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