Carillion Plc Regulatory News (CLLN)

10 August 2015

Carillion selected by UK Government for new Facilities Management Services Agreement, under which up to £4.1 billion of services will be outsourced over the period to 2019

Carillion is one of only three companies to be selected for all three "Lots" in the UK Government's new Facilities Management Services agreement, namely, Total Facilities Management, Hard Facilities Management and Soft Facilities Management. In total, 19 suppliers have been selected for one or more of these three service Lots.

The new Agreement replaces the current framework for facilities management contracts and Central Government Departments, Executive Agencies and Non-Departmental Public Bodies will be mandated to use the new Agreement to purchase facilities management services. The Government expects between £1.3 billion and £4.1 billion of services to be outsourced using the new Agreement, which will run until July 2019.

The new Agreement is intended to provide public sector customers with a simplified and more efficient procurement framework that will reduce timescales for accessing facilities management services and the Government expects this to result in over £200 million of savings to public sector customers, while providing greater transparency and improved management information.

Carillion Chief Executive, Richard Howson, commented: "We are delighted to have secured one of only three places on this framework agreement for all three service Lots. Our selection further enhances our position as a leading provider of facilities management services to the public sector and should offer new opportunities to grow our UK support services business."

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 2014 of some £4.1 billion, employs around 42,000 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 businesses 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.

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 906333

Finsbury

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