Carillion Plc Regulatory News (CLLN)

19 November 2014

Carillion appointed preferred bidder to provide facilities management services in public sector prisons, worth up to approximately £200 million over five years

The UK Ministry of Justice has appointed Carillion as the preferred bidder for two contracts to provide a range of services to the National Offender Management Service for public sector prisons in two geographical areas. One contract will provide services in prisons in London and East of England and the second will provide services in prisons in the South West, South Central, Kent and Sussex.

These contracts, which cover approximately 50 prisons, will be for an initial five-year period, but with the potential for two subsequent one-year extensions, subject to satisfactory performance. Carillion will provide a wide range of hard and soft facilities management services, including mechanical and electrical engineering maintenance, building fabric maintenance, energy and environmental services, waste management, escort services for contractors, cleaning services and minor building works. Mobilisation is scheduled to begin in 2015 with a contract start date of 1 June 2015. The combined revenue from these two contracts is expected to be between £35 million and £40 million per annum.

Commenting, Carillion Chief Executive, Richard Howson, said: "We are delighted to have been selected for these services contracts. I believe this reflects our ability to provide fully integrated service solutions that are tailored to the needs of our customers, combined with a strong focus on quality and value for money. We look forward to working closely with the Ministry of Justice to support its objectives of providing more efficient, high-quality services in public prisons."

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 2013 of some £4.1 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, utility services, road maintenance, rail services and consultancy services.

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

Richard Adam, Group Finance Director, Carillion plc + 44 (0) 1902 316360

John Denning, Director Group Corporate Affairs, Carillion plc + 44 (0) 1902 316426

Finsbury

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