Carillion JV wins defence contracts

A Carillion joint venture has won two separate British defence infrastructure contracts worth £158m, affording further relief to the crisis-hit construction company as it reviews its business.
By The Newsroom
Published 18th Jul 2017, 09:31 BST
Updated 18th Jul 2017, 10:36 BST
Carillion. Photo: PA/PA WireCarillion. Photo: PA/PA Wire
Carillion. Photo: PA/PA Wire

The award follows Monday’s announcement that a consortium that includes Carillion has won a £1.4bn pound contract to help build Britain’s High Speed 2 railway.

Carillion is reviewing options after it booked an £845m pound writedown against customer payments it no longer expected to be able to collect. It also issued a profit warning and severed ties with its chief executive.

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The company said on Tuesday that the new contracts awarded by the Defence Infrastructure Organisation (DIO) would see it deliver facilities management services, including catering and mess services, to 233 military establishments in Britain.

The two contracts are worth £158m over the initial contract period of five years, Carillion said, adding that there were opportunities to double that figure in the same period through catering and retail sales.