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Sun September 15 2019

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Carillion buoyed by Network Rail deal

6 Nov 17 Carillion has won a pair of major contracts on Network Rail's Midland Mainline improvement programme, indicating that key clients are standing by the beleagurered firm.

Carillion has signed a £62m contract with Network Rail to upgrade the existing track and infrastructure on the route from London to Corby over the next two and a half years.

Carillion Powerlines, a 50:50 joint venture with Powerlines Group, has signed a contract with Network Rail for the Midland Mainline Electrification programme.  Under the contract, Carillion Powerlines will undertake work to complete the electrification of the route from London to Corby.   This £260m contract starts soon and will take three years to complete.

The two contracts together are thus set to be worth £192m in revenues to Carillion.

Carillion recently posted a pre-tax loss of nearly £1.2bn for the first six months of 2017, prompting a hasty rethink on strategy and questions about the viability of the business.

Interim chief executive Keith Cochrane said: “We are pleased to have agreed these awards with Network Rail, demonstrating that we continue to have the support of key customers and win important new contracts.  The group faces significant challenges, but we remain focused on executing our disposals programme, taking cost out and strengthening our balance sheet.”

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