Carillion Plc Regulatory News (CLLN)

12 May 2014

Carillion joint ventures selected by the Defence Infrastructure Organisation for two Next Generation Estate contracts potentially worth up to £1.7 billion including additional services and extensions. 

These contracts form part of the Defence Infrastructure Organisation's (DIO) Next Generation Estate Contracts programme to maintain and upgrade Defence infrastructure.

A Joint Venture between Carillion and Amey (67:33) has been awarded the National Prime Housing contract that is estimated by MoD to be worth in the order of £625 million over the initial five-year contract period, which can be extended by a further five years subject to approval.

Under this contract the Joint Venture will provide a wide range of hard facilities management services, including routine maintenance, occupancy management, furniture installation, energy efficiency services, statutory inspections and improvements for more than 49,000 military homes throughout the UK. This enlarged contract replaces the contract currently held by a Carillion and Amey Joint Venture under which it delivers similar services for military houses in England and Wales.

A Carillion and Amey (50:50) Joint Venture has been awarded the Scotland and Northern Ireland Regional Prime contract that is estimated by MoD to be worth in the order of £150 million over the initial contract period of five years, which can be extended by a further five years, subject to approval.

Under this contract, the Joint Venture will provide a wide range of hard facilities and asset management services across 30 key sites including RAF Lossiemouth, RAF Leuchars, Kinloss Barracks, HMS Caledonia and Kentigern House in Scotland, and Aldergrove Airfield, Thiepval Barracks and Kinnegar Logistics Base in Northern Ireland, together with the provision of new buildings. Hard facilities management services will include planned and reactive building fabric and mechanical and electrical engineering maintenance, together with utility efficiency services. The service delivery model has also been designed to support the UK Government's objective of encouraging the use of Small and Medium-sized Enterprises.

Both Carillion and Amey will also use these new contracts to create further opportunities to demonstrate their commitment to the Armed Forces Corporate Covenant, which helps ex-service personnel find employment and supports the provision of Reservists.

Carillion Chief Executive, Richard Howson, said: "We are delighted that our Joint Ventures have been selected for these major contracts. We look forward to building on the strong relationship we have developed with Defence Infrastructure Organisation and to working closely with DIO to deliver further improvements to the quality and energy efficiency of the Defence estate.

"DIO set industry the challenge of providing added value to the military estate and the offers we submitted have been recognised as generating demonstrable benefits in this regard, including the use of market leading customer feedback systems."

Of the £1.5 billion of new orders and probable orders referred to in Carillion's Interim Management Statement on 7 May, approximately £0.5 billion related to these two contracts.

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

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

Finsbury

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

Defence Infrastructure Organisation

The Defence Infrastructure Organisation (DIO) plays a vital role in supporting the UK's Armed Forces by building, maintaining and servicing what the men and women who serve our country need to live, work, train and deploy on operations.

DIO is part of the Ministry of Defence (MOD). It is responsible for managing and maintaining land and properties, as well as providing related support services, to meet the current and future needs of the MOD and personnel at home and abroad, and to support current operations.

Its work includes supporting operational units by providing and improving single living and service family accommodation; training areas and historic military sites. DIO actively manages these to ensure the needs of Defence are met, value for money is achieved, and its heritage is protected, as well as achieving its environmental goals.