Carillion preferred bidder for £210 million of new work in the Middle East

27th February 2013

In the Middle East we have secured probable orders worth approximately £210 million for projects in Oman, Abu Dhabi and Saudi Arabia, where we expect to begin delivering our first major project during 2013.

In support services, we have won orders and probable orders worth some £280 million.  This includes facilities management contracts in the UK and Canada, a further highways maintenance contract in Canada and Energy Company Obligation (ECO) contracts in the UK.  These ECO contracts are initially worth some £75 million, but have significant potential for growth. 

In construction services (excluding the Middle East), we have secured new and probable orders worth approximately £160 million, for long-term public and private sector customers.In line with our policy of selling equity in mature Public Private Partnership (PPP) projects, we have sold our investment in the Permanent Joint Headquarters, Northwood project.  This sale generated cash proceeds of £29.4 million, which represented a discount rate in line with the average seven per cent, at which we have been consistently selling PPP equity investments. 

Commenting, Carillion Chief Executive, Richard Howson, said: ''Although markets remain challenging, we have made a good start to the year in terms of new orders and probable orders and I am particularly pleased with our progress in the Middle East and in the ECO market.  We have also remained selective in terms of the contracts for which we bid in order to support margins, by focusing on contracts where we can use the breadth of our skills and the scale of our resources to differentiate our offering.   

The secondary market for PPP equity remains strong and continues to support our policy of selling investments in mature projects and reinvesting the proceeds in new projects".

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About Carillion

Carillion is a leading integrated support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities.

The Group had annual revenue in 2012 of some £4.4 billion, employs around 40,000 people and operates across the UK, in the Middle East and Canada.

The Group has four business segments:

Support services - this includes facilities management, facilities services, energy services, rail services, road maintenance, utility services and consultancy businesses.

Public Private Partnership (PPP) projects - this includes our investing activities in PPP projects in our chosen sectors of defence, health, education, transport, secure, energy services and other Government accommodation.

Middle East construction services - this includes our building and civil engineering activities in the Middle East.

Construction services (excluding the Middle East) - this includes our building, civil engineering and developments activities in the UK and our construction activities in Canada.

Rik Kendall, Media Relations Manager, Carillion +44 (0)191 676 3067