Carillion bags Network Rail contracts worth 122m pounds

3rd Jul 2013 07:33

Construction firm Carillion said it has been awarded two contracts by Network Rail worth 122m pounds. The Crossrail West Inner Track Improvements and Crossrail Old Oak Common and Paddington Approaches and Intercity Express Programme contracts will enable the new Crossrail service to be integrated into Network Rail's existing infrastructure from Stockley Junction in the West through to Old Oak Common on the approaches to Paddington, the group explained. Carillion chief executive Richard Howson said: "As one of Network Rail's largest suppliers, we are delighted to have been selected for these important contracts. We look forward to continuing our strong relationship with Network Rail through working together to delivering the upgrades required to enable Crossrail to connect to the existing network between Stockley Junction and Old Oak Common." In a separate trading update, Carillion said despite challenging market conditions its first-half performance was in line with expectations and full-year targets are unchanged. It added total revenue in the first half of 2013 will be lower than in the corresponding period in 2012, primarily because the rescaling of UK construction resulted in the group having a lower revenue run rate. However, Carillion said it expects total revenue in the second half of 2013 to be higher than in the first half and we continue to target growth in total revenue for the full year. It said new order intake has been strong with first-half orders and probable orders of £2.9bn. It expects to maintain the total value of orders and probable orders at around £18bn. Net debt at the half year is expected to be around £270m "Despite market conditions remaining challenging, new order intake has remained strong and we have continued to win good quality work, in line with our selective approach, to maintain a strong order book and good revenue visibility," the group said in a company statement. "In addition, our pipeline of contract opportunities has increased. Therefore, our expectations for the full year and our medium-term targets for growth, remain unchanged." CJ