Carillion wins £1.7bn of orders in less than four months

WOLVERHAMPTON construction and support services giant Carillion has revealed that it has secured £1.7bn worth of orders in the last three and a half months.

The firm says it has signed contracts, secured preferred bidder positions and been awarded frameworks ammounting to that figure since June 30. 

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 it expects to generate more than £400m of revenue.

These include the Midland Main Line electrification project, which was recently “unpaused” by the UK Government, the North West 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 already reported on TheBusinessDesk.com, a Carillion joint venture has been selected as the preferred bidder for the Midland Metropolitan Hospital public private partnership (PPP) project in Birmingham/Sandwell that is expected to generate more than £600m of revenue for the firm.

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 the firm of more than £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 the firm of more than £140m.

In the Middle East Al Futtaim Carillion, the firm’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 £1.7bn. 

“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.”