Middle Eastern hospital deals provide sticking plaster for crisis-hit group

Carillion has revealed its latest deal, a £240m contract for its Middle Eastern joint venture Carillion Alawi, as it continues to hope investors gain confidence about its long-term future.

The joint venture is close to a second agreement, worth £120m, that would also be with the Oman Ministry of Health.

Carillion’s shares fell off a cliff in July, losing 70% of their value over three days after revealing an accounting black hole. Its share price went down to 57p, before recovering slightly to 70p in the following days.

However the shares have continued to slip, and last night closed at 43p – giving the former FTSE 100 company a market value of below £190m.

Its latest agreement names Carillion Alawi as the preferred bidder for the design and build of the New Sultan Qaboos Hospital in Salalah, Oman. Carillion has a 50% stake in the joint venture, alongside the Zawawi family. 

The joint venture also expects a further letter of award to be signed shortly for a hospital in Khasab.