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Carillion makes sweet start to the year with £350m of new business

31 Jan 11 Carillion has announced a raft of new contract awards totalling£320m in value that look set to help it continue the growth it enjoyed in 2010.

The company has won a £45m contract to build new, and refurbish existing, accommodation at Whittington Barracks for Defence Estates. Work will start in September 2011 and completion is due in February 2014. 

Carillion has also been awarded a £21m contract by Argent to design and build a social rented and shared equity apartment block as part of The Kings Cross Partnership's £3bn Kings Cross regeneration scheme.  As a construction partner of Argent, Carillion has already delivered a number of projects for this scheme.

Under a £25m contract, Carillion will provide facilities management services to the Land Registry for five years. Carillion will work across the Land Registry’s estate of 37 properties.

A 50:50 joint venture of Carillion’s has won support services contracts worth some £80m over the next five years, including facilities management services for Dow and property management services for Enexis.  

BAA has appointed Carillion as one of three contractors to provide mechanical and electrical engineering services and fabric maintenance at Heathrow Airport. This is worth up to £75m over three years and extends Carillion's long-term relationship with BAA for whom it already provides a range of support and construction services.  Carillion is also in negotiation on further integrated facilities managements contracts, notably with customers in the financial services sector, that are expected to generate more than £100m of revenue over the next five years.

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Carillion also reports that it has had “constructive discussions with the UK Government under its supplier engagement programme”. It has signed a memorandum of understanding identifying how Carillion can work together with the government on procurement and service delivery. This is likely to involve changing the scale and scope of outsourced services across a number of existing contracts. 

Overseas, Carillion has been awarded a £60m construction management contract to build Phase 2 of the Uptown Shopping Centre in Victoria, British Columbia, having successfully delivered the award winning Phase 1.  Carillion has also won a £51m contract to build the new Queensway Carlton Hospital in Ottawa and renovate the existing hospital.

Group chief executive John McDonough said: "We have made a positive start to 2011, following our strong performance in 2010, for which we expect to report good profit and earnings growth, and year-end net cash of well over £100 million.  New order intake remains healthy and we have secured new orders plus probable orders worth some £350m. 

 "I am also pleased to report that we have signed a memorandum of understanding with the UK government.  We look forward to working with our customers to provide value-for-money services that support their business objectives and with government customers specifically to improve efficiency and deliver savings that will enable them to reduce running costs." 

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