Carillion Plc Regulatory News (CLLN)

1 November 2013

Carillion wins UK highway contracts worth over £180 million

During Prime Minister David Cameron's, visit to Carillion's head office in Wolverhampton yesterday, he announced that Carillion had been awarded a £70 million contract to transform another section of the M6 into a smart motorway.

This contract, together with other contracts for maintenance and improvement projects, brings the total value of highway contracts won by Carillion in recent weeks to some £180 million and reflects Carillion's strategy of focusing on large contracts and contracts for long-term key customers.

The Highways Agency has awarded Carillion the £70 million contract to transform a further section of the M6 in the West Midlands, between Junctions 10A and 13, into a smart motorway. Smart motorways use a range of innovative technologies, combined with new operating procedures to control traffic flow actively. This includes variable mandatory speed limits and opening up the hard shoulder to traffic to reduce congestion and improve journey times and safety. Carillion is one of the Highways Agency's four delivery partners for the smart motorway national framework and this latest award recognises Carillion's position as a leading provider of these services and follows the successful delivery of three previous phases of the smart motorway programme around Birmingham. Advanced enabling works started in September 2013 and the main contract works will follow immediately, with completion scheduled for Spring 2015.

Stockport Metropolitan Borough Council has selected a Carillion Joint Venture as the preferred bidder to design and build the A6 Manchester Airport Relief Road, which is expected to have a construction value of around £100 million of which Carillion's share will be some £50 million. This Early Contractor Involvement (ECI) contract, which includes the construction of a 10 kilometre dual two-lane carriageway with four road and rail bridges linking the A6 at Hazel Grove to Manchester Airport, is expected to start on site early in 2015 and be completed within two years.

In addition, Carillion has been awarded a 12-month ECI contract for Northumberland County Council to build the £25m Morpeth Northern Bypass on which construction is expected to start in January 2015, a £16 million, 20-month contract for Leeds City Council for maintenance of the A58 Woodhouse Tunnel, on which construction is expected to start in November 2013, a £12 million, 18-month contract for Sheffield City Council to build the Tinsley Link section of the Bus Rapid Transit North scheme and an £8 million, 17-month contract for the Highways Agency to improve the Elkesley Junction on the A1 in Nottinghamshire.

Commenting, Carillion Chief Executive, Richard Howson, said: '''We are delighted with our continuing success in winning contracts in our target markets, in line with our strategy of focusing on larger contracts and on contracts for customers with whom we have built strong long-term relationships. I believe this success reflects our commitment to quality and reliability, together with our sector leading sustainability credentials, which are an increasingly important part of our offering to customers."

In respect of the contracts announced today, a value of approximately £80 million was included within probable orders in Carillion's half-year results announcement on 22 August 2013, with the remaining £100 million classified as pipeline opportunities.

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 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.

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