Carillion wins new business worth £1.7bn since the half year
Carillion has signed contracts, secured preferred bidder positions and been awarded frameworks, worth some £1.7 billion, since 30 June 2015.
In UK infrastructure services, Carillion and Carillion joint ventures have been selected by Network Rail for a number of frameworks and Early Contractor Involvement contracts from which Carillion expects to generate over £400 million of revenue. These include the Midland Main Line Electrification project, which was recently “unpaused” by the UK government, the Northwest Electrification project and the electrification of the Schotts line in Scotland.
In UK Construction, Carillion has secured contracts and preferred bidder positions that are expected to be worth £311m.
These include the recently announced A14 upgrade, which is being delivered by a Carillion joint venture for Highways England and which is expected to be worth some £146m to Carillion, together with preferred bidder positions for a £90m contract to build the Great Arundel Court development on London’s Embankment and a £75m schools contract for Peterborough City Council.
As announced on 11 August 2015, a Carillion joint venture has been selected as the preferred bidder for the Midland Metropolitan Hospital Public Private Partnership (PPP) project in Birmingham that is expected to generate over £600m of revenue for Carillion.
In Canada, since the half year a Carillion joint venture has been selected as the preferred bidder for the Stanton Hospital PPP project in Northwest Territories, on which it has now reached financial close: Carillion will invest approximately £4m of equity in this project, which is expected to generate total revenue for Carillion of over £220m. Also in Canada, a Carillion joint venture has achieved financial close on the North Battleford PPP hospital in Saskatchewan, having been selected as the preferred bidder for the project in the first half of 2015: Carillion will invest approximately £4m of equity in this project, which is expected to generate total revenue for Carillion of over £140m.
In the Middle East, Al Futtaim, Carillion’s joint venture business in the UAE, has been selected as the preferred bidder for two commercial development projects in Dubai, which are worth approximately £90m to Carillion.
Carillion chief executive, Richard Howson, said: “As we expected, the pace of work winning in the second half of the year has started to pick up. Since the half year, we have secured contracts, preferred bidder positions and framework agreements that are expected to be worth around £1.7 billion. With cash flow remaining healthy and these recent contract successes, we remain confident of achieving this year’s targets, including ending the year with strong revenue visibility for 2016.”