Carillion Plc Regulatory News (CLLN)

6 July 2016

Carillion awarded support services contracts worth up to £600 million

Total new first-half orders and probable orders worth £2.5 billion

Carillion's market leading business in Oman, Carillion Alawi, has signed a 4.5-year contract extension for Petroleum Development Oman (PDO) to continue the provision of integrated facilities management services at twelve locations across Oman, worth £240 million.

Carillion has also been awarded two contracts by the Northern Ireland Housing Executive to deliver maintenance services for its housing stock, worth up to £366 million over a period of up to 10 years, of which some £60 million was included in the Group's order book at 30 June. We expect the balance of the £366 million to be added to the order book during the life of these contracts.

These latest contracts take the total value of new orders and probable orders won by Carillion in the first six months of 2016 to approximately £2.5 billion.

In Oman, Carillion Alawi began working in partnership with PDO in July 2013 to deliver an integrated facilities management service, focused on providing safe, cost effective services across the PDO concession estate, which inlcudes PDO's main cotsal estate, and covers an area of some 100,000 square kilometres. The range of services being delivered comprises engineering maintenance, projects, catering and environmental services, including cleaning, housekeeping, pest control, landscaping and linen and laundry services. Under this contract extension, which will begin this month, Carillion Alawi will continue to focus on delivering safe, cost effective services by driving cost reduction and efficiency through reducing waste, improving productivity and reshaping service delivery.

In Northern Ireland, Carillion will deliver maintenance services for the Housing Executive for its housing stock in South Region 1, which includes nearly 12,000 properties in the North Down/Newtownard and South Down Areas, and in Belfast Region 2, which includes nearly 10,00 properties in the South and East Belfast Areas. The first of these contracts is expected to start on 1 September 2016 and the second will start progressively between 1 August and 1 September 2016, with diferent dates for each area within Belfast Region 2.

Under these contracts Carillion will provide a wide range of maintenance services for the Executive's housing stock, including responsive maintenance, minor disabled adaptations, void property works and major works external cyclical maintenance, as well as discretionary works, such as kitchen and bathroom replacements, electrical rewiring, civil engineering and Landlord's Periodical Electrical Testing. These new contracts add to the Heating Framework contracts covering 30,000 of the Housing Executive's properties that Carillion has been delivering for over thirty years.

Commenting, Carillion Chief Executive, Richard Howson, said: ''We are delighted to have secured the contract extension for PDO that reflects the strong partnership we have developed with PDO. It also reinforces our commitment to supporting PDO through the efficient management and operation of its critical infrastructure, using our sector leading ability to provide facilities management services to the oil and gas sector across the Middle East, including operating in the challenging desert environment where the vast majority of PDO's assets are located.

"We are also delighted to have been awarded two important new contracts for the Northern Ireland Housing Executive, which build on the strong relationship we have developed with the Housing Executive for whom we have provided services for many years. We look forward to supporting the Housing Executive in achieving its objectives for providing an excellent service to its tenants.

"These latest wins take the total value of new orders and probable orders for Carillion in the first six months of 2016 to around £2.5 billion, which continues to reflect the strength of our strategy and business model".

Notes to Editors

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 2015 of some £4.6 billion, employs around 46,000 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, utility services, road maintenance, rail services, remote site accommodation services and consultancy services in the UK, Canada and the Middle East.

Public Private Partnership (PPP) projects - this includes investing activities in PPP projects for Government buildings and infrastructure, mainly in the Defence, Health, Education, Transport and Secure accommodation sectors.

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

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

This and other Carillion news releases can be found at www.carillionplc.com

For more information

John Denning, Director Group Corporate Affairs, Carillion plc +44 (0) 1902 906333

Finsbury

James Murgatroyd or Gordon Simpson +44 (0) 207 2513801