Construction group secures £600m contracts despite uncertainty

CONSTRUCTION group Carillion has emphasised its lack of operations on the continent by securing deals worth £600m in Northern Ireland and Oman.

The Wolverhampton-based group has warned it is “clearly too early” to predict the extent of the impact on business of the referendum vote but pointed out to investors the group “has no significant operations in mainland Europe”.

It added: “Prior to the referendum we undertook extensive work to assess the possible impact on our business of a vote to leave and we have put in place robust plans to manage this outcome.”

The deals announced today are for a four and a half year contract extension for Petroleum Development Oman to continue the provision of integrated facilities management services at twelve locations across Oman, worth £240m.

Carillion has also been awarded two contracts by the Northern Ireland Housing Executive to deliver maintenance services for its housing stock, worth up to £366m over a period of up to 10 years.

The group said these latest contracts take the total value of new orders and probable orders it has won in the first six months of 2016 to approximately £2.5bn.

In a statement to the stock market, it said: “We continue to expect our full-year performance to be led by revenue and margin growth in support services, with Public Private Partnership projects, Middle East construction services and construction services excluding the Middle East also performing in line with expectations.

“Therefore, with revenue visibility for the full year of 97% and a strong pipeline of further contract opportunities, the group remains on track to make further progress in 2016.”