Carillion Plc Regulatory News (CLLN)

10 April 2017

Carillion Joint Venture awarded HESTIA contract by Defence Infrastructure Organisation (DIO) with a potential value of up to £200 million

A Carillion Joint Venture, has been awarded the HESTIA South East and London Region Multi Activity Contract, one of the seven HESTIA contracts that will be awarded. This contract has the potential to generate in excess of £200 million across the initial contract period of five years, based on retail revenue projections.

Under the contract, the Carillion Joint Venture will deliver a range of soft facilities management services, including catering, retail and leisure, and hotel and mess services, for 87 key Defence sites across Kent, Sussex, Surrey, Berkshire and Central and Greater London. The contract will go live at the beginning of September 2017 and will employ over 1800 people.

This contract builds on the strong relationship that Carillion has established with the Ministry of Defence through its existing Next Generation Estates contracts with Defence Infrastructure Organisation (DIO) that coverthe provision of housing maintenance, design, construction and facilities management services across the UK.

Carillion will use the HESTIA South East and London contract to create further opportunities to demonstrate its commitment to the Armed Forces Corporate Covenant, which helps ex-service personnel find employment and supports the recruitment of Reservists.

Carillion Chief Executive, Richard Howson, said: "We are extremely proud that our Carillion Joint Venture has been selected for this major contract. We look forward to building on our existing strong relationship with the Defence Infrastructure Organisation, and to working with the DIO and senior military personnel to deliver a range of services that will help to improve the lives of service personnel."

HESTIA will provide a consistent quality of soft FM services for everyone living and working on the UK defence estate through a suite of seven regional Multi Activity Contracts. These contracts will promote the wellbeing of people within UK defence through the delivery of quality soft FM services that meet individual and defence needs, are adaptable to local circumstances and agile enough to meet the changing needs of the defence community.

Notes to Editors

Carillion is a leading integrated support services company with a substantial portfolio of Public Private Partnership projects, extensive construction capabilities and a sector leading ability to deliver sustainable solutions. The Group had annual revenue in 2016 of some £5.2 billion, employs around 48,500 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, utilities 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 in the UK and Canada.

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.

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