Carillion says it is on track after winning Network Rail contracts

Carillion has continued to show signs that it has retained the confidence of its suppliers after it announced two significant contracts with Network Rail.

The infrastructure group had a torrid summer after a major profit warning in early July caused its shares to crash 75% in three days.

Four months into its rebuilding, it has appointed a new chief executive and strengthened its board, sold a couple of non-core assets, and secured some sizeable contracts.

Keith Cochrane, interim chief executive, said: “We are pleased to have agreed these awards with Network Rail, demonstrating that we continue to have the support of key customers and win important new contracts.

“The Group faces significant challenges, but we remain focused on executing our disposals programme, taking cost out and strengthening our balance sheet.”

Today it has revealed an agreement to with Network Rail to upgrade the existing track and infrastructure on the route from London to Corby that is expected to be worth £62m over the next 30 months.

Carillion Powerlines, its joint venture which it has a half-share in, will complete the electrification of the same route. The work is expected to generate £260m over three years.

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