Carillion Telent signed £500m extension contract


Carillion Telent signed £500m extension contract

As a preferred supplier for BT’s programme to 33 local authority regions, the Carillion Telent (60:40) joint venture will continue to work with the telecoms firm for the next 3.5 years.


Carillion’s chief executive, Richard Howson, said: "We are delighted to have extended our relationship with BT with this contract for BDUK [broadband delivery UK]. I believe this reflects our commitment to providing high-quality, value for money services and to building strong, long-term relationships with our customers."


Following the review of its trading for the final quarter, the firm has announced that it had lost approximately £1.7bn from the order book as a result of selling stakes in PPP projects and lowering the set requirements from Green Deal and Energy Company Obligation contracts.


The loss was counterbalanced by the £17.5m acquisition of the FM business John Laing Integrated Services and several big orders in the past few months.


Amongst these is the £800m Airport City project in Manchester, worth up to £580m to Carillion.


Additionally, Carillion was also selected as a preferred bidder for £200m of highways work, and £100m energy efficiency services contract for West Sussex County Council as well as rail infrastructure services contracts worth £60m.


Despite the array of signed engineering contracts, Carillion expects full-year revenue at construction services to be lower than last year as a result of the planned rescaling of the UK construction activities.


Although the net debt has decreased during the period and is expected to fall to about £250m for the year end, new order intake remained strong with the value of the group's orders and expected orders at the year end to total about £18bn. At the year end, the value of the group's pipeline of contract opportunities is anticipated to be similar to the half year value of about £37bn.


Carillion expects the “market conditions to remain challenging" in the near future.

It added, "However, through 2013 we have continued to win new work in line with our selective approach and maintained a strong, high-quality order book and good revenue visibility. We believe that this, together with a healthy pipeline of contract opportunities, means that the group continues to be well-positioned for the future."