Carillion Plc Regulatory News (CLLN)

30 July 2013

Carillion Joint Venture selected as preferred bidder for 10-year strategic partnership with Stockport Metropolitan Borough Council, initially expected to be worth over £100 million.

Stockport Metropolitan Borough Council (SMBC) has selected Carillion and its partner CBRE as the preferred bidder to form a Joint Venture company with the Council that will be responsible for the strategic management of all the Council's property services. The contract is initially expected to be worth over £100 million, with the potential for this to grow significantly through increasing the scale and scope of service delivery.

The Joint Venture, to be known as the Stockport Strategic Property Partnership (SSPP), will be established in September 2013, with the objective of transforming the Council's operational and non-operational property portfolios. The Joint Venture will deliver substantial savings for the Council, while maintaining high-quality services. The Partnership will initially be for 10 years, with the option to extend this for a further five years.

The Joint Venture will also have the opportunity to provide similar services to other Councils within the Association of Greater Manchester Authorities (AGMA), because they will have the option to procure services from the Joint Venture without the need for further procurement processes or costs.

Carillion will provide strategic advisory services for estates management, facilities management, energy management and capital projects, with CBRE delivering strategic asset management and development advice. Carillion will also have an exclusive option to deliver operational professional services, which are currently being delivered by the incumbent provider NPS Stockport Ltd., including estates management and multi-disciplinary design.

Services delivered directly to schools and academies in Stockport and other authorities within AGMA will also be part of the new Joint Venture service offering and form part of the SSPP's growth plans.

Commenting, Carillion Chief Executive, Richard Howson, said: ''We are delighted to have been selected for this strategic partnership with Stockport Metropolitan Borough Council. I believe this further success in the Local Authority outsourcing market once again reflects our ability to provide integrated service solutions that enable Local Authorities to reduce costs without sacrificing service quality."

Deputy Council Leader Councillor Mark Weldon said: "To achieve greater efficiencies and collaboration between public sector agencies to deliver local community services, we are transforming the Council's estate and property portfolios.

I am confident that the new operating model will deliver an effective and efficient strategic property service to meet the Council's future priorities." 

For more information

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

Finsbury

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

Notes to Editors

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, 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.

Stockport Metropolitan Borough Council (SMBC)

SMBC is one of ten Authorities in the Association of Greater Manchester Authorities. The other members are - Bolton Council, Bury Council, Manchester City Council, Oldham Council, Rochdale Metropolitan Borough Council, Salford City Council, Tameside Metropolitan Borough Council, Trafford Council and Wigan Council

The Association of Greater Manchester Authorities (AGMA)

AGMA comprises ten Authorities in Greater Manchester. These Authorities formed the Greater Manchester Combined Authority on the 1st April 2011. Greater Manchester is the first area in the country to establish a statutory Combined Authority, which intends to co-ordinate key economic development, regeneration and transport functions for the wider region.

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