Last weeks trading statement from this support/construction business proved what a strong position the company is in.

looks to be plenty of growth going forward.......

RNS Number : 8437J
Carillion PLC
10 December 2008



10 DECEMBER 2008




PRE-CLOSE UPDATE ON TRADING IN 2008

UNDERLYING EARNINGS PER SHARE TO GROW BY 15% SUPPORTED BY ROBUST BALANCE SHEET







Leading UK support services company, Carillon plc, is providing this pre-close update on trading in 2008, ahead of announcing its preliminary results on 4 March 2009.




Highlights




Continuing strong performance supported by a reduction in the Group's underlying effective tax rate to around 20% - underlying earnings per share(1) for the 12 months to 31 December 2008 expected to grow by approximately 15%, some 5% ahead of previous expectations.

Alfred McAlpine successfully integrated with integration and re-organisation cost savings increased by 10 million to a run rate of 50 million per annum by the end of 2009.

Balance sheet remains robust - cash flow remains strong with net borrowing expected to be below 275 million at the year end.

Expect strong revenue growth in support services at margins in excess of the 4.1% achieved in 2007.

Public Private Partnership projects creating significant value - 6 investments sold for 59.7 million in 2008.

Middle East business expected to deliver strong growth with an increasing contribution from projects in Abu Dhabi - margins expected to be at least 6%.

Satisfactory performance in construction services (excluding the Middle East) - operating margin expected to be in excess of the 1% achieved in 2007.

Underlying effective tax rate expected to reduce from 25% to around 20% in 2008 and to remain at this level for the foreseeable future.

.

Business performance




Our results are expected to reflect the strong progress the Group has made in 2008, enhanced by the acquisition of Alfred McAlpine in February 2008. This acquisition created the UK's largest support services business and further increased the Group's resilience, in line with our strategy for growth.




Support services




Support services continues to be a major driver of earnings growth and continues to account for over half the Group's underlying operating profit (1) . Revenue is expected to increase substantially in 2008, primarily reflecting the acquisition of Alfred McAlpine. The operating margin is also expected to increase, within our target range of four to five per cent, largely due to the effect of integration cost savings.










(1) Continuing operations before intangible amortisation, impairment, restructuring costs and non-operating items.










New order intake has remained strong and we continue to have our largest ever pipeline of opportunities for new contracts.




Public Private Partnership (PPP) projects




Our investments in PPP projects continue to generate substantial value. During the year a further six investments in mature projects were sold, generating total cash proceeds of 59.7 million. As indicated in our 2008 Interim Report, this reflected a net present value for the cash flows from these investments based on an average underlying discount rate of under 5.5 per cent. Carillion has now sold a total of 23 mature investments in PPP projects over the last five years, generating cash proceeds of 179 million and a pre-tax profit of 104 million.




We expect to continue to make good progress in this segment. During 2008, we achieved financial close or preferred bidder positions on four further projects in which we expect to invest 11.2 million of equity. In addition, we have a healthy pipeline of potential new projects, including eight projects for which we are currently shortlisted.




Middle East construction services




In Middle East construction services, we expect to report further strong growth in 2008, driven by increased activity levels in Dubai and Oman, together with contributions from Abu Dhabi and Cairo, where we began operations at the beginning of the year. Going forward, we expect growth to be increasingly driven by Abu Dhabi, where we negotiated substantial new work in 2008 worth over 1 billion and also increased our pipeline of potential opportunities.




We therefore continue to expect long-term sustainable growth in this region and remain confident that we will achieve our objective of broadly doubling revenue in this segment from the 2007 level of 337 million to a run rate of over 600 million by the end of 2009, at an operating margin of some six per cent.




Construction services (excluding the Middle East)




In this segment, we remain focused on project selectivity, in line with our objective of increasing margins rather than revenue, in order to improve the combined operating margin for all our construction activities, including the Middle East, towards three per cent over the next three years. This strategy is supported by our substantial, high-quality order book and probable new orders, which provide sufficient visibility for us to be confident of achieving our expectations for 2009.




Following the acquisition in October 2008 of the Vanbots Group, a well established construction management services group in Canada, the integration of this business is progressing to plan. This acquisition has significantly enhanced our ability to provide fully integrated solutions, especially for PPP projects, further strengthening our market leadership in Canada, particularly in the health sector.




Balance sheet




The Group continues to deliver strong cash flow and net borrowing at the year end is expected to be below 275 million and below our target of 300 million.




Taxation




Carillion has been successful in agreeing with the tax authorities certain prior year tax issues and a mechanism for the use in 2008 and beyond of certain tax losses acquired with Alfred McAlpine. Consequently, the Group's effective tax rate is expected to reduce from 25 per cent in 2007 to around 20 per cent in 2008. The Group's ability to maintain its effective tax rate at this level for the foreseeable future will be further underpinned by the UK Government's proposal to exempt UK companies from taxation on foreign earnings from April 2009, announced in its 2008 Pre-Budget Report on 24 November 2008.



Acquisition and integration of Alfred McAlpine




The benefits of acquiring and successfully integrating Alfred McAlpine continue to exceed our expectations. Integration and reorganisation cost savings are now expected to reach an annual run rate of 50 million by the end of 2009, an increase of 10 million on the previously announced run rate of 40 million. Additional cost savings have been identified across most areas of our enlarged business as integration has progressed, notably through the adoption of Carillion's shared central services and the outsourcing and off-shoring of back-office processes. All savings have either been delivered, or firmly secured for delivery, with absolute savings expected to be 15 million in 2008, 35 million in 2009 and 50 million in 2010, an increase of 5 million in 2009 and 10 million in 2010. The one-off cost of delivering these savings will increase from the previously announced figure of 40 million to 55 million.










Outlook




The wider economic background will undoubtedly become increasingly difficult and make delivery of our business objectives more challenging. However, Carillion is a well-balanced and resilient business, with strong positions in its chosen market sectors in the UK, the Middle East and Canada. Therefore, with a robust balance sheet, a strong order book and continuing opportunities in our main market sectors, Carillion continues to expect to build on its strong performance in 2008 and deliver materially enhanced earnings in 2009.




Carillion Chief Executive, John McDonough and Group Finance Director, Richard Adam, will host a conference call on this statement for analysts and investors at 9:00am today, Wednesday 10 December. The telephone number to join the conference call is + 44 (0) 207 190 1232.




For further information contact:




Richard Adam, Group Finance Director + 44 (0) 1902 422431

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Outlook statement significant......

Outlook

The wider economic background will undoubtedly become increasingly difficult and make delivery of our business objectives more challenging. However, Carillion is a well-balanced and resilient business, with strong positions in its chosen market sectors in the UK, the Middle East and Canada. Therefore, with a robust balance sheet, a strong order book and continuing opportunities in our main market sectors, Carillion continues to expect to build on its strong performance in 2008 and deliver materially enhanced earnings in 2009.

Two Broker BUY recommendations on friday for carillion...

Carillion PLC

FORECASTS
2008 2009

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Oriel Securities
12-12-08 BUY 149.50 31.10 13.00 193.10 38.30 14.00

Panmure Gordon
12-12-08 BUY 148.54 33.16 12.32 184.19 37.81 13.80

Steady after a good few days.

managed to lift this from the MF site...

Carillion PLC

FORECASTS
2008 2009

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Oriel Securities
16-12-08 BUY 149.50 31.10 13.00 193.10 38.30 14.00

Numis Securities Ltd
15-12-08 BUY 151.50 33.20 12.50 185.00 38.90 13.50

Panmure Gordon
15-12-08 BUY 148.54 33.16 12.32 184.19 37.81 13.80

Blue Oar Securities
12-12-08 HOLD 147.34 31.13 12.87 184.04 37.60 14.48

FinnCap
04-11-08 BUY 150.00 30.00 12.90 185.00 37.20 14.00

Singer Capital Markets Ltd
08-09-08 BUY 147.50 30.60 12.10 184.00 37.00 13.15

2008 2009
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)
Consensus 149.30 31.01 12.62 184.49 37.92 13.81
1 Month Change 0.39 -0.25 0.00 -1.25 0.48 -0.04
3 Month Change 1.08 -0.69 0.52 -2.30 0.08 0.32


GROWTH
2007 (A) 2008 (E) 2009 (E)
Norm. EPS 19.90% 48.40% 22.28%
DPS 13.25% 34.26% 9.43%

INVESTMENT RATIOS
2007 (A) 2008 (E) 2009 (E)
EBITDA 109.10m 197.13m 231.25m
EBIT 64.20m m m
Dividend Yield 3.88% 5.20% 5.70%
Dividend Cover 2.22x 2.46x 2.75x
PER 11.60x 7.82x 6.40x
PEG 0.58f 0.16f 0.29f
Net Asset Value PS -19.28p p p

Highlights


* Carillion expects to deliver strong first-half growth in underlying
earnings(1) - on track to achieve our objective of delivering materially
enhanced earnings in the full year.

* Balance sheet remains robust - net borrowing at the half year expected to reduce
substantially to around

GBP150 million (December 2008: GBP226.7 million).

* Alfred McAlpine integration cost savings coming through as planned - increasing
from GBP15 million in 2008 to

GBP35 million in 2009 and GBP50 million per annum in 2010.

* Support services continues to perform satisfactorily - margins improving in line
with expectations after benefiting from Alfred McAlpine integration cost
savings.

* Equity investments in Public Private Partnership projects continue to generate
substantial value - sale of two investments in June 2009 generated proceeds of
GBP13.8 million.

* Middle East construction services performing strongly - on track to achieve our
objective of increasing revenue from GBP464m in 2008 to around GBP600m by the
end of 2009, at some 6% margins.

* Construction services (excluding the Middle East) performing satisfactorily
- continues to benefit from a high quality order book and pipeline.

* High quality order book of some GBP19.7 billion at 30 June 2009 (December 2008:
GBP20.4 billion) - plus a pipeline of probable new orders worth approximately
GBP2.9 billion (December 2008: GBP3.1 billion).

* 99% revenue visibility in 2009(2)

To top.

Interim Results.

Canadian contract win.

Carillion secures contract and preferred bidder positions for long-term road maintenance and Local Authority facilities management contracts worth up to 250 million.

In Canada, Carillion has secured a contract in Ontario and a preferred bidder position in Alberta for road maintenance work worth in the region of 200 million over 11 years.

Interim Management Statement.

Carillion, a leading UK integrated support services company, continues to perform well despite market conditions remaining challenging and expects earnings in 2011 to grow strongly, in line with market expectations.

Carillion PLC
Re Contract
RNS Number : 7272R
Carillion PLC
09 November 2011

9 November 2011

Carillion selected for support services contracts by Fulcrum and National Grid, worth approximately 450 million.

Leading support services company, Carillion, has signed a five-year framework contract to provide gas and multi-utility services for Fulcrum, potentially worth 70 million. Carillion, in joint venture with Eltel Networks, has also been selected as the preferred bidder by National Grid to provide refurbishment and upgrade services for its 400kV overhead transmission network in England and Wales, potentially worth up to 375 million over five years.

Under the framework contract with Fulcrum, which will commence immediately, Carillion will deliver gas and multi-utility connections across the North of England, North & Central Wales, West Midlands, East Midlands and East Anglia. This success further enhances Carillion's position as one of the largest providers of gas connection services in the UK.

Carillion-Eltel Networks, a 50:50 partnership, will work in alliance with National Grid under a framework agreement to deliver overhead line transmission services, which are potentially worth up to some 375 million over five years and form part of National Grid's 22 billion investment programme. The main contract will commence in April 2012, with the volume of work allocated to the Joint Venture increasing annually, subject to performance.

Carillion Chief Executive, John McDonough, said: "We are delighted to have been selected to deliver these key services for Fulcrum and National Grid that further underpin our strong order book and pipeline. The contract for Fulcrum enhances Carillion's position as one of the largest providers of gas connection services in the UK and our selection as the preferred bidder to deliver overhead line services for the National Grid underlines the strength of Carillion's offering as a leader in this market sector. We look forward to working with Fulcrum and in alliance with National Grid to deliver these important programmes."

RE Contract.


Carillion Joint Venture wins 395 million contract in Qatar

Carillion, in an 80:20 Joint Venture with Qatar Building Company, has been awarded a 395 million contract for a major phase of the Msheireb Downtown Doha project developed by Msheireb Properties, a subsidiary of Qatar Foundation for Education, Science and Community Development.

Securing this prestigious contract, Carillion's first contract in Qatar, underlines the reputation that Carillion has established in the Middle East region over the last 40 years for quality and delivery. The contract, which is worth some 316 million to Carillion, will begin in December 2011.

The Msheireb Downtown Doha project, a mixed-use development comprising retail, commercial, residential, leisure, cultural and community facilities, is located close to the historic origins of Qatar's capital city next to the Amiri Diwan. The project involves the development and regeneration of 31 hectares in the centre of Doha, to meet the vision and objectives set by the Emir, His Highness Sheikh Hamad Bin Khalifa Al Thani and Her Highness Sheikha Moza bint Nasser. It is a unique opportunity to regenerate the core of
the city as a place to live and work, and to reflect the growing international importance of Doha.

Carillion's sector-leading capabilities in delivering sustainable solutions will play a key role in delivering this project, to meet the objectives of Msheireb Properties in achieving a "Platinum to Gold" rating under the LEED Green Building Rating system of the U.S. Green Building Council.

Commenting, Carillion Group Chief Executive, John McDonough, said: "We are delighted to have been selected to deliver this prestigious project, which will make a major contribution to the regeneration of the centre of Doha. We look forward to working with Msheireb Properties to deliver a visionary solution that will meet the high standards of sustainability that have been set for this transformational development."

Trading Statement.

Highlights

Underlying profit before tax(1) and underlying earnings per share(2) are expected to increase strongly, in line with market expectations

Cash flow remains strong with year-end net debt now expected to be below 100m and significantly better than our previous target of below 125m

Group operating margin expected to increase significantly, including strong support services margin

First contract won in Qatar, worth over 316m to Carillion

Integration of Carillion Energy Services (CES) is ahead of expectations and we continue to target strong returns from this acquisition

CES cost savings expected to increase from 15m to 25m, with the one-off cost of delivery expected to increase from 20m to 40m driven by the Government's proposed changes to Feed in Tariffs

Strong order book continues to provide good revenue visibility

Pipeline of contract opportunities remains well over 30bn

Group continues to be well positioned to make further progress in 2012 and over the medium term

Carillion contract win

StockMarketWire.com

Carillion has been awarded a £104.9m contract to transform another section of the M6 in Birmingham - between Junctions 5 and 8 - into a managed motorway.

Managed motorways use a range of innovative technology combined with new operating procedures to actively control traffic flow. This includes variable mandatory speed limits and opening up the hard shoulder to traffic to reduce congestion and improve journey times and safety.

Carillion is one of the Highways Agency's four delivery partners for the managed motorway national framework and this award strengthens Carillion's position as a leading provider of managed motorway upgrades and follows the successful delivery of two previous phases of the managed motorway programme around Birmingham.

Advance works for the contract are due to start at the end of January 2012 and the main works by June 2012, subject to the completion of the statutory process, with contract completion scheduled for 2014-15.

Commenting, Carillion CEO, Richard Howson, said: "We are delighted to have been chosen to work with the Highways Agency as its delivery partner for this latest managed motorway contract, which further reinforces Carillion's position as one of the leading suppliers for the Agency's managed motorway programme."

Carillion appointed preferred bidder for 12-year highway maintenance contract in Canada worth over £100 million.

Carillion Canada has been named as the preferred bidder for the Area Maintenance Contract (AMC) 2011-12 London, a 12-year contract worth in excess of £100 million.

The contract will commence in May 2012 and involves the provision of year-round routine maintenance services for Provincial Highways in the London area of Ontario. Under the contract, Carillion will also provide preventative maintenance services, when required, for which additional payments will be received, adding to the overall value of the contract.

This contract follows Carillion's recent success in being awarded similar highways maintenance contracts for the Huntsville area of Ontario and the Eastern Central Region of Alberta, together worth some £200 million over 11 years.

These contract successes have reinforced Carillion's position as the largest provider of outsourced highway maintenance services in Canada and reflects our ability to provide high-quality, cost-effective solutions tailored to the needs of our customers, with whom we have developed long-term partnerships.

Commenting, Carillion Chief Executive, Richard Howson, said: "We are delighted to have been chosen to work in partnership with the Ministry of Transportation, Ontario, to deliver highway maintenance services for the London area of Ontario. This announcement further reinforces Carillion's position as the leading private sector provider of highway maintenance services in Canada".

Speedy Hire ("Speedy")

Carillion awards major three year extension to preferred supplier agreement with Speedy Hire

Speedy Hire today announces it has signed a three year extension to its existing preferred supplier agreement with Carillion. The contract will now run from 2012 until 2016 and is expected to be worth in excess of £50m over the next four years.

The agreement reinforces Speedy's relationship with Carillion as its preferred supplier for a full range of products and services across all Carillion's UK operations including joint ventures where it is the lead company.

Steve Corcoran, Chief Executive, said: "I am delighted that we continue to develop our relationship with Carillion, one of the UK's largest construction and support services companies. This new agreement is another important step in our growth in our key markets of water, waste, energy and transport, all of which are undertaking major new infrastructure projects in the UK."

Final Results.

Results look OK but SP spiralling down. What's the problem?

28 March 2012


Carillion wins UK support services and construction contracts worth £95 million

Carillion has been awarded a five-year contract to provide facilities (FM) services for Centrica. The contract is worth some £50 million over five years and will extend the Centrica relationship to 2017. Carillion has provided Centrica with FM services since 2005 and under this new contract, Carillion will provide a wide range of FM and energy efficiency services for 92 properties with a total area of some 8.6 million square feet.
After achieving a place on the Gatwick Airport Limited Major Framework, Carillion has been selected for one of the first major contracts to be let under this framework, namely the Pier 5 Reconfiguration project. This £45 million contract involves delivering an improved pier service to meet future growth in passenger numbers at Gatwick's North terminal. Work is due to commence in March 2012 with completion planned for April 2014.
Commenting, Carillion Chief Executive, Richard Howson, said: "Winning these contracts reflects our focus on delivering excellent customer service and value for money. This is the foundation for our continuing success in winning contracts across our chosen market sectors and we look forward to working in partnership with Centrica and Gatwick Airport to deliver these contracts".

Carillion awarded 10-year contract by Oxfordshire County Council for property and facilities management services worth up to £700 million

Oxfordshire County Council has awarded a 10-year contract to Carillion for the provision of property and facilities management services worth up to £500 million to Carillion. The Council will achieve revenue savings of at least £550,000 per annum. This is the first time that the Council has grouped all of its property services into one contract and this is the first Local Authority contract of this kind in the UK.

Trading Statement

Highlights

· First-half trading is in line with expectations.

· As expected, the planned re-scaling of UK construction, together with the timing of project starts in the Middle East, means total revenue will be lower than in the first half of 2011.

· Total operating margin is expected to increase.

· Cash flow and balance sheet remain strong with net debt expected to be around £125m.

· A further £20m of equity in Public Private Partnership (PPP) projects has been sold.

· Total first-half new orders and probable orders worth up to £2.2bn.

· Operational integration of Carillion Energy Services is largely complete, with integration cost savings expected to reach our target of £25m by end 2013.

· Underlying(1) profit and earnings are on track to meet full-year expectations, despite market conditions remaining challenging.

Group performance

Despite challenging market conditions, trading in the first six months of 2012 is in line with the Board's expectations, as the Group continues to benefit from a resilient business mix and from adhering to the strict selectivity criteria we apply to choosing the contracts for which we bid.

As expected, total revenue will be lower than in the first half of 2011. This is due primarily to lower UK construction revenue, as we continue the planned re-scaling of our UK construction activities to align them with the shrinking UK market and, as also previously announced, to Middle East construction revenue being second-half weighted, which reflects the timing of project starts.

The Group's total first-half operating margin is expected to increase, reflecting the benefit to margins of re-scaling our UK construction business, together with our group-wide focus on contract selectivity.

The value of the Group's order book and probable orders is expected to remain strong at around £18.0 billion and the Group's pipeline of contract opportunities is expected to have increased to some £35 billion.

Net borrowing at the half year is expected to be approximately £125 million.




(1) Before intangible amortisation, non-recurring operating items and non-operating items.

You seem to like your support services companies, skinny. Not a sector that inspires me during a recession and the graph for this one is a bit too southerly pointing for my liking! Lots of upbeat RNS over the last year or so, but not reflected in the sp so far.

Harry - the only one I actually hold atm is ISG - and I was very tempted to sell them earlier in the week before today's statement - but I didn't!

I still follow BBY,CLLN,COST,GFRD and more recently, KIER.

The only builder I currently hold is TW and they are effectively free.

Interim Results

· Financial performance in line with expectations

- First-half revenue reduced, primarily due to the continued re-scaling of UK construction and the timing of project awards in the Middle East
- Strong growth in underlying profit from operations reflects a continuing improvement in operating margin
- Underlying profit before taxation and underlying earnings per share increased, despite a higher net financial expense
- Substantial increases in reported profit before taxation and basic earnings per share, included a contribution from the sale of equity investments in Public Private Partnership projects

· Strong balance sheet

- Net borrowing better than expected
- Over £800m of long-term borrowing facilities

· Good revenue visibility: strong order book plus probable orders; record pipeline of opportunities

- 92% revenue visibility(5) for 2012
- £2.2bn of new and probable orders won in the first half, with total orders and probable orders worth £18.3bn at 30 June 2012 (31 December 2011: £19.1bn)
- Record pipeline of contract opportunities of £35.6bn (31 December 2011: £33.1bn), including major UK public sector outsourcing opportunities, supports targets for growth

· Interim dividend increased by 2% to 5.4p (2011: 5.3p)

Interim Management Statement

"PERFORMANCE IN LINE WITH PREVIOUS GUIDANCE"

Following the Group's first-half eight per cent increase in operating profit, we continue to expect to deliver improvements in operating profit and total operating margin in the full year. We also continue to expect full-year revenue to be lower than in 2011, primarily due to the planned re-scaling of our UK construction activities to align these activities with the shrinking UK market. The expected increase in the Group's net financial expense in 2012, due largely to a higher interest charge relating to pensions, remains unchanged from the guidance we gave when we announced our half-year results.

The performance of, and outlook for, our four business segments, namely support services, Public Private Partnership projects, Middle East construction services and construction services (excluding the Middle East), remains in line with those we announced at the half year.

Our pipeline of contract opportunities remains strong and since the half year we have continued to win new orders and probable orders, notably in the Middle East where our businesses have won new and probable orders with a total value to Carillion of some £185 million. The largest of these orders is a £113 million contract to build a mixed use development for the Oman Public Authority for Social Insurance, on which work has already commenced.

During the third quarter, we completed the sale of further equity investments in Public Private Partnership projects, generating cash proceeds of £15.4 million.

Year-end net debt is expected to be around the same level as it was at the half year, namely £115 million, in line with previous guidance.

Outlook

In addition to remaining on track to deliver full-year results in 2012 in line with expectations, we also remain well positioned to achieve our medium-term targets, namely to deliver growth in support services and to double our annual revenues in the Middle East and in Canada in the five year period to 2015, in each case to around £1 billion.

Improved prospects for the uk construction and encouraging order book in the Middle East could prompta re-rating.
Carrillion has just won a £600m contract withy Birmingham city council to improve the energy effciency of 60,000 homes and offices,and the deal could be extended throughout the West Midlands, boosting its value to £1.5bn. And news is expected soon on the Royal Liverpool hospital project for which carrillion has been shortlisted-
this could be worth another £750m. Yet even before these the order book looked healthy. It stood at £18.3bn at the end of June when Carillion also had a record £35.6bn- worth of contracts in its bidding pipeline.
But it gets better. Earlier this month , the government announced new guidelines for PFI schemes, a string of projects that were on hold will now be released. Chief executive Richard Howson believes there could be £2.5 bn of priority schoolswork up for grabs in the first quarter of next year and thats just for starters.

Trading on forward PE ratio of just seven and offers a prospective yield of nearly 6%, while the order book stands at over £18bn in addition to a record £35bn- worth of contracts in its bidding pipeline. Going to take a while before the momentum builds but required spending on infrustructure does not go away, its simply being piled up.

Carillion: Investec reduces target price from 380p to 350p and reiterates a buy rating.

Pre-close Trading Update

Carillion expects to deliver a robust financial performance in 2012, with growth in operating profit despite market conditions remaining challenging. As guided, revenue will be lower than in 2011, due principally to the planned re-scaling of UK construction, but the Group's total operating margin is expected to increase as the overall quality of our business continues to improve.

Underlying earnings per share are expected to be broadly in line with market expectations. From 2012, profit from selling equity investments in Public Private Partnership (PPP) projects will be treated as part of underlying operating profit, (previously treated as non-operating); although this is not expected to have a material effect on underlying earnings per share, it is expected to move underlying earnings per share slightly ahead of the market consensus forecast for 2012.

Reported profit before tax and earnings per share are expected to increase substantially.

Carillion acquires 49 per cent interest in Canadian support services business for some £24 million

Integrated support services company, Carillion plc, has acquired a 49 per cent interest in The Bouchier Group for a consideration of £23.75 million. The consideration will be paid in cash in phased installments over the period to January 2014, with instalments adjusted to ensure the acquisition is completed on a debt free, cash free basis.

Carillion HM contract in Canada £525m

Carillion Canada has been selected for long-term contracts to provide year-round routine maintenance services for Provincial Highways in Ontario and Alberta, worth some £525 million.

Looks good.

Carillion strategic partner by Lancashire CC £150m

Carillion has been selected by Lancashire County Council as the preferred bidder to become a strategic partner for the delivery of a range of property services for East and North Lancashire.

This innovative contract will initially focus on property development, which is expected to be worth up to £150 million over 10 years, but this has the potential to increase as the scope of the services to be provided by Carillion can be extended under the terms of the contract.

The contracts are all lined up, as said in an earlier post they must come in some time.
:-))

Carillion secures 525m pounds of highway contracts in Canada
Wed 12 Dec 2012

CLLN - Carillion

Latest Prices
Name Price %
Carillion 298.60p +0.91%

FTSE 250 12,188 -0.02%
FTSE 350 3,165 +0.05%
FTSE All-Share 3,099 +0.06%
Support Services 5,218 -0.14%

LONDON (SHARECAST) - FTSE 250-listed support services company Carillion has been selected for a series of highways maintenance contracts in Canada that are collectively worth 525m pounds.

Carillion Canada, the Canadian arm of the global company, was selected for long-term contracts to provide year-round routine maintenance services for Provincial Highways in Ontario and Alberta.

In Ontario, the Ministry of Transportation Ontario has awarded Carillion the area maintenance contracts for Kingston West and Bancroft, worth approximately £120m over 12 years and selected Carillion as the preferred bidder for the Thunder Bay Area Maintenance Contract, worth £105m over 11 years.

The Alberta Ministry of Transportation selected Carillion as the preferred bidder for five Contract Maintenance Areas worth some £300m over 10 years. Of the total value of £525m, some £475m relates to contract renewals.

Commenting, Carillion Group Chief Executive, Richard Howson, said: "This further reinforces Carillion's position as the largest provider of outsourced highways maintenance services in Canada and reflects our ability to provide high-quality cost-effective solutions for our customers, with whom we have developed strong long-term partnerships."

Carrillion has a market capitalisation of £1,285.99m and operates across the UK, Canada and the Middle East.

Its share price rose 0.71% to 298p at 08:25 on Wednesday morning.

The chart is looking good for a further rise.

Carillion: Credit Suisse ups target price from 316p to 349p and downgrades to neutral.

Carillion: Berenberg upgrades from hold to buy.

Final results on Wed 27 Feb

Wednesday's agenda: Carillion looks to the Middle East
6:30 pm by John Harrington





Carillion (LON:CLLN), according to Panmure Gordon, is definitely a stock that divides opinion so Wednesday's full year results could see the dividing lines redrawn.

The market consensus is for profit before tax of £207.8mln on turnover of £4.38bn. The range for profit before tax runs from £169mln to £220mln.

Panmure Gordon is in the camp that is positive on the stock, but it acknowledges that "cautious peer group comments on UK construction have had a negative impact while uncertainty persists on its international strategy."

On the plus side, the group has a "strong support services offering including energy services, and improving quality of earnings."

For Panmure Gordon the key issues will be: UK construction activity, which Carillion's peers suggest has become more challenging; international opportunities, particularly in the Middle East and Canada; the energy services outlook post feed-in tariffs issues and the energy bill.

Peel Hunt, meanwhile, says the focus is likely to be on the pace of UK construction margin erosion, and the potential offset from Middle East recovery.

"Working capital outflows are likely to lead to further leverage and we look for year end net debt of £138.7m (average 2012 net debt c£320m). Pension liabilities (IAS 19 £248m) will likely lead to ongoing (£40m) cash top-ups," Peel Hunt reckons.

RNS Number : 7413Y

Carillion PLC

27 February 2013






27 February 2013



Carillion preferred bidder for £210 million of new work in the Middle East

Total new orders and probable orders for the Group of £650 million



Carillion has made a good start to 2013, winning new orders and probable orders in the first seven weeks of the year that are expected to be worth some £650 million.



In the Middle East we have secured probable orders worth approximately £210 million for projects in Oman, Abu Dhabi and Saudi Arabia, where we expect to begin delivering our first major project during 2013.



In support services, we have won orders and probable orders worth some £280 million. This includes facilities management contracts in the UK and Canada, a further highways maintenance contract in Canada and Energy Company Obligation (ECO) contracts in the UK. These ECO contracts are initially worth some £75 million, but have significant potential for growth.



In construction services (excluding the Middle East), we have secured new and probable orders worth approximately £160 million, for long-term public and private sector customers.



In line with our policy of selling equity in mature Public Private Partnership (PPP) projects, we have sold our investment in the Permanent Joint Headquarters, Northwood project. This sale generated cash proceeds of £29.4 million, which represented a discount rate in line with the average seven per cent, at which we have been consistently selling PPP equity investments.



Commenting, Carillion Chief Executive, Richard Howson, said: ''Although markets remain challenging, we have made a good start to the year in terms of new orders and probable orders and I am particularly pleased with our progress in the Middle East and in the ECO market. We have also remained selective in terms of the contracts for which we bid in order to support margins, by focusing on contracts where we can use the breadth of our skills and the scale of our resources to differentiate our offering.



The secondary market for PPP equity remains strong and continues to support our policy of selling investments in mature projects and reinvesting the proceeds in new projects".

Preliminary Results

· Robust financial performance
- Revenue reduced as previously guided, primarily due to the planned rescaling of UK construction
- Underlying profit from operations(2) increased, reflecting an improvement in total operating margin
- Reported profit before taxation and basic earnings per share both increased substantially, due to minimal non-recurring and non-operating items
- Underlying profit before taxation(2) and underlying earnings per share(2) reduced slightly, due to a higher net financial expense, including an increase in the non-cash interest charge relating to pensions

· Strong balance sheet
- Net borrowing of £155.8 million (2011: £50.7 million) reflects the expected outflow of working capital, primarily due to the rescaling of UK construction, and the acquisition of the Bouchier Group in Canada
- Over £1 billion of committed borrowing facilities and private placement funding

· Strong order book and record pipeline of contract opportunities
- £5.2 billion of new and probable orders in 2012
- Total order book plus probable orders of £18.1 billion (2011: £19.1 billion), with the reduction on 2011 due primarily to the sale of equity investments in Public Private Partnership (PPP) projects and the rescaling of UK construction
- 75% revenue visibility(3) for 2013 (2011: 77% for 2012)
- Pipeline of contract opportunities worth some £35.2 billion (2011: £33.1 billion)

· Proposed full year dividend increased by 2% to 17.25p (2011: 16.9p)

(1)
Restated following the change in presentation of profits from the disposal of Public Private Partnership equity investments from non-operating items to operating items (amounting to £13.2 million in 2012 and £11.5 million in 2011).
(2)
The underlying results stated above are based on the definitions included in the key financial figures.
(3)
Based on expected revenue and secure and probable orders, which exclude variable work and re-bids.

Carillion (LSE: CLLN.L - news) : Canaccord Genuity downgrades to hold with a target price of 350p

Investec Hold 306.30 309.20 350.00 305.00 Downgrades

Broker hold at 350 or 305, today's fall to 275 makes these very tempting.

Trading statement due @lunchtime today - I had a dabble 1st thing after the BBY read across induced fall, now not sure whether to hold or not!

AGM Statement

AGM AND INTERIM MANAGEMENT STATEMENT

EXPECTATIONS FOR 2013 UNCHANGED
OVER £1.6 BILLION OF NEW ORDERS AND PROBABLE ORDERS IN THE YEAR TO DATE

At Carillion plc's Annual General Meeting today, Chairman, Philip Rogerson, made the following comments on the Group's performance in 2013.

"The Group's expectations for 2013 that were announced with our 2012 results remain unchanged, despite market conditions remaining challenging.

The Group's healthy work-winning performance in 2012 has continued in 2013 with new orders and probable orders in the year to date of over £1.6 billion. In addition, Carillion has been selected by National Grid as one of six framework contractors to deliver its £1.5 billion sub-station construction programme over the next five years. This follows Carillion's appointment as one of four framework contractors that will support the National Grid's £3.2 billion programme to renew and refurbish high voltage overhead line cables over the next eight years.

As expected, revenue in the first half of 2013 is likely to be lower than in the corresponding period in 2012, primarily because the rescaling of our UK construction activities resulted in the Group having a lower revenue run-rate. However, having achieved this rescaling over the past two years by being selective in terms of the contracts for which we bid, we now have a higher quality UK construction business, which is targeting revenue growth consistent with our selective approach of focusing on national construction projects and long-term customers, in order to achieve our target margins. In 2013, the contribution to Group profit from support services, Middle East construction services and construction services (excluding the Middle East) is expected to be second-half weighted. However, profit from Public Private Partnership projects is expected to be weighted towards the first half of the year, due to the timing of equity sales.

The Group's balance sheet remains strong and we continue to target cash-backed profit in 2013, after adjusting for
the final phase of the working capital outflow arising from rescaling UK construction, in line with previous guidance.

Therefore, with a strong order book and a substantial pipeline of contract opportunities, our expectations for 2013 and medium-term targets for growth, remain unchanged."

Royal Liverpool Hospital

Carillion selected as preferred bidder for £335 million Royal Liverpool Hospital Public Private Partnership project

Carillion has been selected by the Royal Liverpool and Broadgreen University Hospitals Trust to deliver the new Royal Liverpool University Hospital Public Private Partnership (PPP) project, the capital cost of which will be some £335 million.

In addition to carrying out the construction work, Carillion will deliver support services for the new hospital from which it expects to generate approximately £80 million of revenue over the life of the 30-year concession contract. Carillion also expects to invest some £24 million of equity in the project.

Work on site is due to start shortly after the project reaches financial close, which is expected in January 2014, with completion scheduled for 2017. The new hospital will be built next to the existing hospital, which will be demolished once services have been transferred. The new hospital will be the largest in the country with 646 beds, including a 40-bed Critical Care Unit, 18 operating theatres and one of the largest emergency departments in the North West.

Ex-divi 15th May 2013 (11.85p)

Carillion selected as the preferred bidder for £400 million Phase 1 of Battersea Power Station

Carillion has been selected to deliver the £400 million first phase of redevelopment at Battersea Power Station.

The project is a mixed-use development comprising 866 apartments, including 11 penthouses, together with retail facilities, theatre space and business studios, in two blocks built on a podium with two levels of basement parking. The redevelopment project will be located within the area bounded by Battersea Power Station to the East, the main railway serving Victoria Station to the West and the river Thames to the North. The main block will vary in height from 8 storeys at its southern end, rising to 18 storeys and then reducing to 12 storeys at its northern end. The second block will be 8 storeys high. Extensive hard and soft landscaping is included as part of the Phase 1 works.

This project forms part of the overall strategy to create a high-density, mixed-use development around the restored former Grade II* Power Station. Main construction works for Phase 1 will start in the summer of 2013 and are scheduled for completion in 2016. The Battersea Power Station development site is owned by a Malaysian consortium of S P Setia, Sime Darby Property and Employees' Provident Fund. The development is being managed by British firm Battersea Power Station Development Company.

Carillion Chief Executive, Richard Howson, said: "We are delighted to have been selected as the preferred bidder for this prestigious project, which I believe reflects Carillion's reputation for delivering high-quality, value for money projects. We look forward to working in partnership with the Battersea Power Station Development Company to deliver this iconic project that will make a major contribution to the transformation of this historic site.

"This takes the total value of new orders and probable orders for Carillion in 2013 to some £2.6 billion and demonstrates the benefits of our strategy in construction services of focusing on national projects."

Support @240ish.

Carillion Rail in partnership with SPL Powerlines

Infrastructure and support services provider Carillion has today announced a Cooperation Agreement (CA) with Austrian-based SPL Powerlines, one of Europe’s leading specialists in electrically powered transport systems.

6th June 2013
The partnership strengthens Carillion's existing capabilities in the rail sector, particularly around electrification and overhead line (OHL) work.

With one of the lowest percentages of electrified rail lines in Europe there is a need to develop the UK electrification infrastructure. Network Rail is investing £2 billion through its Control Period 5 expenditure between April 2014 and April 2019 on a major rail electrification expansion to address this - and Carillion is among a group of tier 1 suppliers on a framework panel bidding to help deliver the programme.

StockMarketWire.com
Carillion Alawi has been awarded a £130m contract by the Oman Tourism & Development Company to construct exhibition halls, an energy centre and a three-storey car park.

This contract forms part of the Oman Convention and Exhibition Centre Project, which has an estimated construction value in the region of £1bn. The 18-month contract, which is scheduled to begin in July 2013, involves the construction of 13 buildings, including exhibition halls with a gross floor area of 45,000sq m, an energy centre, ancillary buildings for security, taxi services, maintenance, waste management facilities and electrical substations and car parks for 4,200 vehicles.

Carillion Alawi will also deliver mechanical, electrical and plumbing installation, all interior finishes and landscaping. Further contracts for subsequent packages on the Oman Convention and Exhibition Centre Precinct, including auditorium and banquet halls, a 5-star hotel, a 4-star hotel, the Business District, and hotel apartments are expected to come to market between now and the end of 2014.

StockMarketWire.com
Carillion's joint venture business in the United Arab Emirates, Al Futtaim Carillion, has been awarded a £130m contract by Mubadala to design and build a luxury Hotel on Al Maryah Island in Abu Dhabi's new central business district.

Construction of this five-star hotel, which will be 144 metres high and have a floor area of 100,000 square metres, will start in June 2013 and is scheduled for completion by the end of 2015.

Trading Statement

Highlights

· First-half performance in line with expectations and full-year targets unchanged
· As expected, the planned re-scaling of UK construction has led to lower first-half revenue
· First-half underlying operating profit(1) expected to increase
· New order intake strong with first-half orders and probable orders of £2.9bn
· Net debt at the half year is expected to be around £270m

StockMarketWire.com
Carillion has been awarded two contracts by Network Rail - Crossrail West Inner Track Improvements and Crossrail Old Oak Common and Paddington Approaches and Intercity Express Programme - which together are worth £122m.

These 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 contracts involve a wide range of services including design, track work, switches and crossings, overhead line and cable management, together with minor civil engineering works.

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."

The contracts, which are being procured and managed by Network Rail with some funding coming from Crossrail, are due from completion by summer 2017.

UBS Sell 269.60p 230.00p 210.00p Reiteration

Long article in the IC today. They are confident of further growth, increased divi and growing order book. They recommend BUY.
I will post the column when I can.

I guess UBS has more followers than IC judging by the price reaction. What a caning.

IC article from last week:
"Shares in Carillion have fallen by more than 20% since the start of this year, mainly because of the weak UK construction sector. But this is puzzling because UK construction accounts for less than 10% of Carillion's impressive order book, which reached £18bn at the end of december. Moreover, there are signs that the UK picture is starting to improve.
A rescaling of the UK business meant that the group was more selective about which contracts it took on. So while turnover from UK operations last year fell by 31% operating profit actually rose by 25%. Since then, Carillion has been selected to deliver the first £400m redevelopment phase of the Battersea power station site and, more recently, the group has been chosen as one of the preferred bidders to provide construction services for Manchester airport, worth a potential £500m.
A further £130m of work has also been secured in the group's Middle East construction division, in Oman. Probable new orders in the Middle East so far this year have reached more than £340m. That's more than the total for the whole of the previous year."

Berenberg Bank comment:
"Even after a £115m working capital outflow this year, driven by UK construction rescaling, we expect Carillion to maintain a strong balance sheet, with gearing of around 19% and a net debt to cash profits multiple of 0.7 times, We also expect to see significant expansion in the Middle East operation and if Carillion can achieve it's 1/3 win to bid ration target, there could be even further 15% upside to our current 2014 estimates. Expect 2013 pre-tax profit of £211m & EPS of 41.25p, with a dividend of 18.5p, rising to EPS of 44.88p in 2014. Based on 2014's estimate, the shares trade at a discount to construction peers of around 40%. Our price target is 370p. BUY."

Panmure Gordon comment:
"The transformation from a pure construction company into a multinational construction and support services group certainly isn't reflected in Carillion's valuation. Metrics such as PE ratio and enterprise value both stand at discounts to those of it's most immediate peer, Interserve. As well as a growing Middle East division, the group is also well placed in Canada, where there is a healthy private finance initiative sector. We believe our forecasts are on the conservative side at £199m of pre-tax profit for 2013, giving EPS of 40p. The prospective dividend yield is 7% and our price target is 400p. BUY."

Carillion Joint Venture selected as preferred bidder for 10-year strategic partnership with Stockport Metropolitan Borough Council, initially expected to be worth over £100 million.

Stockport Metropolitan Borough Council (SMBC) has selected Carillion and its partner CBRE as the preferred bidder to form a Joint Venture company with the Council that will be responsible for the strategic management of all the Council's property services. The contract is initially expected to be worth over £100 million, with the potential for this to grow significantly through increasing the scale and scope of service delivery.

The Joint Venture, to be known as the Stockport Strategic Property Partnership (SSPP), will be established in September 2013, with the objective of transforming the Council's operational and non-operational property portfolios. The Joint Venture will deliver substantial savings for the Council, while maintaining high-quality services. The Partnership will initially be for 10 years, with the option to extend this for a further five years.

The Joint Venture will also have the opportunity to provide similar services to other Councils within the Association of Greater Manchester Authorities (AGMA), because they will have the option to procure services from the Joint Venture without the need for further procurement processes or costs.

Carillion will provide strategic advisory services for estates management, facilities management, energy management and capital projects, with CBRE delivering strategic asset management and development advice. Carillion will also have an exclusive option to deliver operational professional services, which are currently being delivered by the incumbent provider NPS Stockport Ltd., including estates management and multi-disciplinary design.

Services delivered directly to schools and academies in Stockport and other authorities within AGMA will also be part of the new Joint Venture service offering and form part of the SSPP's growth plans.

Commenting, Carillion Chief Executive, Richard Howson, said: ''We are delighted to have been selected for this strategic partnership with Stockport Metropolitan Borough Council. I believe this further success in the Local Authority outsourcing market once again reflects our ability to provide integrated service solutions that enable Local Authorities to reduce costs without sacrificing service quality."

Deputy Council Leader Councillor Mark Weldon said: "To achieve greater efficiencies and collaboration between public sector agencies to deliver local community services, we are transforming the Council's estate and property portfolios.
I am confident that the new operating model will deliver an effective and efficient strategic property service to meet the Council's future priorities."

Morgan Stanley Equal weight 283.40 283.40 345.00 345.00 Reiterates

Breaking out looks interesting.......... Bought them this morning.

Good for 330 at least on this run, goldfinger. A lot more eventually.

Fingers crossed LG yep.

Was looking at Broker recos last night and it seems theirs quite a bit left in it.

Mind they were a little mixed.

Do you ever get over to Sharecrazy these days?. Seems to have gone down the drain, shame as it was a brilliant site in the early 2000s. Im sure I remember you posting their.

Went ex-divi on the 4th Sept. Hardly paused for breath and up 33p since.

goldfinger - I gave up on Share Crazy years ago. Pity really as it was a good forum and there were some good posters. I used to post there as 'Pond Life'.

Hi LG and GF
I used to post on Share Crazy too. Yes it was good for information and a lot interesting people and debates. It fell apart when taken over. Just used to post as Lucas.

Re Contract Halton Peel AMC

Carillion named preferred bidder for 12-year Canada highways maintenance contract expected to be worth over £100 million

Carillion Canada has been selected by the Ministry of Transportation Ontario as the preferred bidder for the Area Maintenance Contract (AMC) Peel/Halton in Ontario that is expected to be worth over £100 million over 12 years.

Under this contract, Carillion Canada will provide routine inspection and maintenance services, including snow clearance, together with minor capital works, for over 1,000 kilometers of 2-lane equivalent highway. A Carillion joint venture was the incumbent maintenance contractor for the Halton area, which has been combined with the Peel area under this new and extended AMC.

This latest AMC further strengthens Carillion Canada's position as a leading supplier of highways maintenance services in Ontario. Carillion Canada has a similar market leading position in Alberta and we continue to look for opportunities to extend our operations to other Provinces in Canada.

Commenting, Carillion Chief Executive, Richard Howson, said: ''This latest success reinforces Carillion's position as the leading private sector provider of highways maintenance services in Ontario. Over the last eighteen months, we have won long-term highways maintenance contracts in Ontario and Alberta worth over £720 million, which is making a significant contribution to organic growth in our support services activities in Canada."

Standard Life Investments Ltd < 5%

Looks like we breaking out again on the chart.

Investec Hold 316.20 313.00 275.00 305.00 Reiterates

That's a bit mean. I prefer the Morgan Stanley 345p target.

At least they are moving in the right direction.

Bullish engulfing candle today - trading statement tomorrow!

Interim Management Statement

Trading in the third quarter of 2013 has remained in line with the guidance we gave at the time of our half-year results announcement and we expect to deliver full-year underlying(1) profit and earnings in line with market expectations.

Our order book and pipeline of contract opportunities both remain strong and continue to support our expectations for 2013 and our medium-term targets for growth, which remain unchanged. Since we announced our half-year results on 22 August, we have been awarded a number of further significant contracts. In Canada, we have won a 12-year Area Maintenance Contract in Ontario, worth over £100 million, in Oman we have signed a £90 million contract to build the Kempinski Wave Hotel, which was classified as a probable order at the half year, and in the UK we have been selected as the preferred bidder by West Sussex for a support services contract worth some £100 million over 10 years.

In our half-year results announcement, we noted the slow start to the whole of the Green Deal market, which, together with the delayed start to the Energy Company Obligation (ECO) market, is affecting our revenue expectations from energy services. The development of the Green Deal market continues to be slow and ECO may now be subject to further delays. Consequently, we will restructure this area of our business during the remainder of 2013 to ensure that it is aligned in size to the markets in which it operates. We are still assessing the extent of the restructuring required, while ensuring we maintain an effective offering and service delivery model. Currently, we expect total non-recurring operating charges of some £40 million in 2013.

Cash flow remains in line with previous guidance and we continue to expect net borrowing at the year end to be lower than the £270 million we reported at 30 June 2013, despite the expected additional costs associated with restructuring the Group's energy services activities.

West Sussex County Council selects Carillion as preferred bidder for Sussex Energy Saving Programme worth up to some £100 million

Carillion awarded £92 million contract for the Kempinski Wave Hotel in Oman

In line equates to earnings of 37p per share for a forward PE of just 8.5 and a well-covered divi of 17.35p giving a yield of 5.5% (according to Digital Look). Looks good enough to me. Very modest with lots of room for share price improvement. Some posters have expressed concerns about levels of borrowing here, but a figure of £270 millions against a market cap of £1.36 billions shouldn't cause any sleepless nights.

Re Contract

Carillion teams up with major Chinese company to deliver Manchester's £800 million
Airport City

Manchester Airports Group (MAG) has selected a consortium comprising Carillion, Beijing Construction Engineering Group (BCEG) and the Greater Manchester Pension Fund (GMPF) as its partner to deliver the Airport City development at Manchester Airport. Argent (Property Development) Services will be appointed by the joint venture as development manager for the scheme.

Airport City is one of the largest regeneration schemes in the UK since the Olympics redevelopment in East London. It will provide 5m sq ft of development, including offices, hotels, advanced manufacturing, logistics and warehousing, with an estimated value of £800m. Airport City will be the core element of the Government-designated Enterprise Zone at the heart of which is Manchester Airport, the UK's third busiest airport. A key objective of the Enterprise Zone is to help attract international businesses and to create an additional 16,000 jobs for the North West of England.

The consortium will start work immediately and the project is scheduled for completion over the next 15 years. Carillion expects to invest up to £12 million of equity in the development, as well as delivering up to £580 million of construction work.

StockMarketWire.com
Carillion has been awarded a £70 million contract to transform another section of the M6 into a smart motorway.

This contract, together with other contracts for maintenance and improvement projects, brings the total value of highway contracts won by Carillion in recent weeks to some £180 million and reflects Carillion's strategy of focusing on large contracts and contracts for long-term key customers.

StockMarketWire.com
Carillion has been selected by Sunderland City Council as the preferred bidder to form a strategic partnership to deliver a range of property services to undertake the city's regeneration programme. This innovative contract, which will initially focus on the redevelopment of key sites across the city, is worth at least £100m over the first eight years and potentially up to £800m over 20 years.

StockMarketWire.com
Carillion's trading remains broadly in line with expectations with net debt reducing as expected, with an improved working capital performance in the second half.

The group says its new order intake is strong with the total value of orders plus probable orders remaining at approximately £18bn.

And it says the pipeline of contract opportunities also continues to be strong at some £37bn.

Looking forward, Carillion says it expects market conditions to remain challenging.

But it adds: "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."

StockMarketWire.com
Carillion has reached financial close for a £335m project at the Royal Liverpool University Hospital.

Carillion was selected as preferred bidder for the contract in May.

Carillion will invest some £15.5m of equity in the project, alongside Scottish Widows Investment Partnership who will invest a similar amount, and expects to generate approximately £200 million of revenue from its investment over the 30-year life of the concession contract.

Carillion will also build the new hospital for the Royal Liverpool and Broadgreen University Hospitals NHS Trust at a capital cost of some £335m and deliver non-clinical support services that are expected to be worth approximately £100 million over the concession period. Work on site is due to start early in 2014, with completion scheduled for 2017. The new hospital will be built next to the existing hospital, which will be demolished once services have been transferred. The new hospital will be the largest all single-bed hospital in the country with 646 beds, including a 40-bed Critical Care Unit, 18 operating theatres and one of the largest emergency departments in the North West.

Gone long on CLLN, break up today on chart.......

well found sticky

Middle East business expected to deliver strong growth with an increasing contribution from projects in Abu Dhabi - margins expected to be at least 6%.

that's a very interesting area to be operating once more
property rental rates have been rocketing for the 6 months or so, so when i go back to Dubai in May, i expect to see lots and lots of cranes at work once more

Good luck GF - one of my favourites - although not currently holding.

sticky!!!!!!!!!!!!!!!!!! cheeky so and so. LOL.

Carillion Joint Venture selected by Network Rail as a one of four framework suppliers to deliver a £2 billion electrification programme

CarillionPowerlines, a 70:30 joint venture between Carillion and Austrian-based SPL Powerlines, has been appointed as one of four framework suppliers to deliver a £2bn programme to electrify more than two thousand miles of Britain's railway over the next seven years. This will provided faster, quieter, greener and more reliable journeys for passengers and freight users and reduce the costs of the railway.

The framework suppliers will work with Network Rail to plan and delivera range of schemes, which will see key routes in England, Wales and Scotland electrified for the first time. Six geographic framework contracts have been awarded, with each having a defined work bank of schemes. CarillionPowerlines will deliver two of these regional frameworks, Central (East Midlands Region) and Scotland and North East Region.

Once complete, these electrification schemes, which include the Great Western and Midland main lines, Liverpool to Manchester and Preston, the Valley lines in south Wales and the 'electric spine' from Southampton docks to the West Midlands and Yorkshire, more than half Britain's rail network will be electrified with electric trains accounting for three-quarters of all traffic.

Commenting, Carillion Chief Executive, Richard Howson said: "We are delighted that Network Rail has selected CarillionPowerlines as one of its framework suppliers for this major electrification programme. I believe this reflects the investment we have made, and continue to make, in creating the skills and resources necessary to deliver programmes of this kind and our absolute focus on safety and quality. We look forward to building on the strong partnership we already have with Network Rail, as we work together to deliver these vital improvements to the UK rail network.

Carillion Joint Venture awarded £110 million contract in the Middle East

Carillion's Joint Venture business in the United Arab Emirates, Al Futtaim Carillion, has been awarded a £110 million contract by Aabar Properties to build a five star Hard Rock Hotel in Abu Dhabi.

The Hard Rock Hotel, Abu Dhabi, which will be the first of its kind in the Middle East, will comprise 378 rooms and be located on the UAE capital's Corniche. The hotel will also feature an assortment of signature restaurants, entertainment and meeting facilities, including the renowned Hard Rock Café.

Other key attractions will include a Sky Lobby on the fifth floor podium, a Lobby Bar with outdoor entertainment deck and hookah lounge, as well as a 37th floor Sky Bar with swimming pool. The resort will also host the Body Rock fitness centre and signature Rock Spa.

Construction is scheduled to begin in February 2014, with completion in the first quarter of 2017.

Commenting, Carillion Chief Executive, Richard Howson, said: ''We are delighted to have been selected for this important contract, which reflects our reputation for delivering projects to high standards of quality, safety and reliability. We look forward to working with Aabar Properties to deliver this prestigious hotel."

Final Results

· Financial performance in line with expectations
- Revenue was lower as expected, primarily due to the rescaling of UK construction
- Underlying operating margin(2) maintained at 5.6%
- The reductions in underlying profit before taxation(2) and underlying earnings per share(2) reflected business rescaling and an increase in the net financial expense
- Reported profit before taxation and basic earnings per share reflected the £42.9 million charge for restructuring energy services

· Strong work-winning performance
- £4.9 billion of additional orders and probable orders in the year
- Order book plus probable orders of £18.0 billion (2012: £18.1 billion), after deducting £1.7 billion due to
selling equity investments in Public Private Partnership (PPP) projects and reduced expectations from the
Green Deal and Energy Company Obligation markets, partially offset by the addition of £0.8 billion of orders
acquired with John Laing Integrated Services
- Substantial framework contracts secured in 2013 whose value is not included in the order book
- 81% revenue visibility(3) for 2014 (2012: 75% for 2013)
- Pipeline of contract opportunities worth some £37.5 billion (2012: £35.2 billion)

· Net borrowing reduced from half-year peak
- Net borrowing of £215.2 million (2012: £155.8 million), down from £270.8 million at the half year, despite the additional second-half costs of restructuring energy services and of acquiring John Laing Integrated Services, with a significantly improved working capital performance in the second half of the year, reflecting completion of the rescaling of UK construction
- Main revolving credit facility of £770 million extended from 2016 to 2018
- Over £1.1 billion of committed borrowing facilities and private placement funding to support strategy for growth over the medium term

· Business rescaling complete with Group now well positioned for the future
- Planned rescaling of UK construction complete with revenue run-rate stabilised by the year end
- UK energy services restructured as previously announced to reflect lower expectations for Green Deal and
Energy Company Obligation markets

· Proposed full-year dividend increased by 1% to 17.50p (2012: 17.25p)

Carillion Joint Venture awarded Middle East contract worth approximately £150 million

Carillion selected for support services contracts worth over £370 million

Ex-divi wed 14th May 2014 (12p)

StockMarketWire.com

Carillion has been selected as the preferred bidder to provide facilities management and estate transformational services by the Nottingham University Hospitals NHS Trust (NUH), which includes Queen's Medical Centre and Nottingham City Hospital. NUH selected Carillion following a procurement process that focused on identifying a strategic partner with the experience and capabilities to deliver high-quality, value for money services, which will support the Trust in achieving its objective of delivering continuous improvement to the standards of service it provides for patients. The contract is expected to be worth approximately £200m to Carillion over the initial five-year contract period and there is an option to extend the contract period by a further three years, subject to satisfactory performance.

Under the contract, Carillion will provide a wide range of hard and soft services, including fabric maintenance, mechanical and electrical engineering, catering, cleaning, security, logistics, patient movements, waste management and the operation of the switchboard and helpdesk functions.

StockMarketWire.com
Cantor Fitzgerald has upgraded its recommendation on support services group Carillion (LON:CLLN) to "buy" from "hold" following a good start to the year and believing top-line pressures are showing signs of abating. The broker went on to state that the company looks in much better shape than it has in the past and is encouraged by a number of recent contract wins which provides investors with good revenue visibility. Analysts also reckon cash flow performance should start to improve during 2014 and beyond, having been negatively impacted by restructuring costs associated with its UK construction business. In terms of the stock's valuation, Cantor said: "In our view, Carillion is attractively valued compared to a blended construction / facilities management peer group (c.20% discount) and offers one of the highest dividend yields in the sector." The broker has increased its target price to 420 pence per share (from 350 pence), implying around 15 per cent potential upside.

A most welcome rise today, but it's hard to believe that one upgrade could have such an impact on the market.

Ex-divi wed 14th May (12p)

At Carillion plc's Annual General Meeting today, Chairman, Philip Rogerson, made the following comments on the Group's performance.

"Trading in the year to date is in line with our expectations and work winning has remained healthy.

"We continue to expect the Group to resume revenue growth in 2014, including the resumption of revenue growth in UK construction in the full year. As indicated when we announced our 2013 results, the Group's first-half revenue is likely to be slightly lower than in the first half of 2013, primarily because the planned rescaling of our UK construction activities continued throughout 2013, which resulted in the Group having a lower revenue run-rate at the year end.

"Being very selective in terms of the contracts for which we bid remains central to our strategy for supporting margins, which continue to be in line with our expectations. The investments we make in Public Private Partnership projects are also performing in line with our expectations. As previously indicated, the first-half and full-year contributions to Group profit from these investments will be lower than in 2013, because we plan to sell fewer investments in both periods in 2014.

"We continue to expect the Group to deliver cash-backed profit in 2014 and to return to positive net cash generation, with a consequent reduction in net borrowing at the year end. At the half year, net borrowing is expected to increase, compared with the position at 31 December 2013, primarily because payment of the final dividend in respect of 2013 will be made in June 2014. We continue to expect average net borrowing to fall in both the first half and full year.

"Work winning has continued to be healthy with £1.5 billion of new orders and probable orders in the year to date. Notable successes in support services include signing contracts for Royal Bank of Scotland, Arqiva and Canadian Natural Resources that together are worth £370 million. We have also been selected as the preferred bidder by the Nottingham University Hospitals NHS Trust for a support services contract worth approximately £200 million and as one of four framework contractors to deliver a £2 billion electrification programme for Network Rail. In the Middle East, we have signed contracts to build the Hard Rock Hotel in Abu Dhabi, Phase 1 of the Dubai World Trade Centre and Phase 2 of The Avenue Citywalk development in Dubai that together are worth £320 million. In addition, our pipeline of contract opportunities remains strong.

"In summary, although markets continue to be challenging, our expectations for 2014 remain unchanged. Furthermore, we believe the Group remains well positioned for the future as the medium-term outlook across our markets continues to improve."

StockMarketWire.com
Carillion has been selected as one of three preferred partners to deliver plain line track for Network Rail.

The regions in which Carillion will deliver renewals include the Midlands into the North West, and from Kings Cross to the North East of England.

This work is expected to be worth approximately £100m to Carillion over the five year period for which we expect to sign the contract in June.

Carillion joint ventures selected by the Defence Infrastructure Organisation for two Next Generation Estate contracts potentially worth up to £1.7 billion including additional services and extensions.

These contracts form part of the Defence Infrastructure Organisation's (DIO) Next Generation Estate Contracts programme to maintain and upgrade Defence infrastructure.

A Joint Venture between Carillion and Amey (67:33) has been awarded the National Prime Housing contract that is estimated by MoD to be worth in the order of £625 million over the initial five-year contract period, which can be extended by a further five years subject to approval.

Under this contract the Joint Venture will provide a wide range of hard facilities management services, including routine maintenance, occupancy management, furniture installation, energy efficiency services, statutory inspections and improvements for more than 49,000 military homes throughout the UK. This enlarged contract replaces the contract currently held by a Carillion and Amey Joint Venture under which it delivers similar services for military houses in England and Wales.

A Carillion and Amey (50:50) Joint Venture has been awarded the Scotland and Northern Ireland Regional Prime contract that is estimated by MoD to be worth in the order of £150 million over the initial contract period of five years, which can be extended by a further five years, subject to approval.

Under this contract, the Joint Venture will provide a wide range of hard facilities and asset management services across 30 key sites including RAF Lossiemouth, RAF Leuchars, Kinloss Barracks, HMS Caledonia and Kentigern House in Scotland, and Aldergrove Airfield, Thiepval Barracks and Kinnegar Logistics Base in Northern Ireland, together with the provision of new buildings. Hard facilities management services will include planned and reactive building fabric and mechanical and electrical engineering maintenance, together with utility efficiency services. The service delivery model has also been designed to support the UK Government's objective of encouraging the use of Small and Medium-sized Enterprises.

Both Carillion and Amey will also use these new contracts to create further opportunities to demonstrate their commitment to the Armed Forces Corporate Covenant, which helps ex-service personnel find employment and supports the provision of Reservists.

Carillion Chief Executive, Richard Howson, said: "We are delighted that our Joint Ventures have been selected for these major contracts. We look forward to building on the strong relationship we have developed with Defence Infrastructure Organisation and to working closely with DIO to deliver further improvements to the quality and energy efficiency of the Defence estate."

StockMarketWire.com
Carillion and its joint venture business, Al Futtaim Carillion, have signed, or been selected as the preferred bidder for, contracts in the United Arab Emirates and Saudi Arabia that are worth in total £400m.

In Dubai, Al Futtaim Carillion has signed contracts to build two major luxury hotels that together are worth approximately £300m.

These include Phase IV of the Madinat Jumeirah Resort project that will involve the construction of a luxury 435-room hotel resort for the Dubai-based hotel company Jumeirah Group. This prestigious project, which will be located on a beach-front site next to the famous Burj Al Arab hotel, will be built to world-class standards with high-quality finishes throughout and will include a number of restaurants and leisure facilities.

Construction of both hotels will begin shortly and are scheduled for completion in 2016. These hotels were classified as probable orders in Carillion's interim management statement on 7 May. In addition, Carillion and Al Futtaim Carillion have signed contracts for, or been selected as the preferred bidder for, a number of construction projects in Dubai and in the Kingdom of Saudi Arabia in the healthcare, retail, leisure and residential sectors. Carillion chief executive Richard Howson said: "These latest contract successes continue to reflect the improving outlook in most of our Middle East markets. This includes Dubai, where we continue to see clear signs of recovery with more opportunities coming to market for which our capabilities and reputation for delivering to high standards of quality, safety and reliability are important to customers."

Carillion Joint Venture appointed to £260 million Midlands Highway Alliance framework

The Midlands Highway Alliance is a collaborative arrangement between 20 Local Authorities that gives its members quick, standardised access to high-quality professional services for their civil engineering and highway schemes.

Carillion in joint venture with Lafarge Tarmac (50:50) has been selected as one of the contractors to deliver the Medium Schemes Framework 2, which has a total value of approximately £260 million over a three-year period and an estimated value to the joint venture of £100 million. The Alliance also has the option to extend the framework by a further year to June 2018.

The framework will include the delivery of a wide range of projects on behalf of the Alliance partners, including the reconfiguration of highway layouts, the construction of road and bridgeworks, resurfacing and associated enabling works.

StockMarketWire.com
The Connect Roads consortium comprising Carillion, Balfour Beatty and Galliford Try has been appointed as the preferred bidder to finance, design build and operate the Aberdeen Western Peripheral Route/ Balmedie to Tipperty project (AWPR/B-T). This project, which is estimated to be in the region of £745m, is being delivered in partnership by Transport Scotland, Aberdeen City Council and Aberdeenshire Council and is being procured under the Scottish Government's Non-Profit Distribution (NPD) model. The AWPR project, includes the design and construction of 46km of new dual carriageway between Stonehaven and Charleston, in the south, and Blackdog in the north and a further 12km of upgraded existing dual carriageway between Blackdog and Tipperty.

The contract will also include the construction of 40 kilometres of new side roads, 30 kilometres of access tracks and 72 new bridges, including two significant focal point bridges over the rivers Dee and Don.

Carillion expects to invest up to £20 million of equity (one third share) in the project and to have a one third share of the construction revenue. Following the completion of construction in 2018, the route will be managed and maintained by Connect Roads for 30 years.

StockMarketWire.com
Carillion Saudi Arabia has signed a contract with the Aldara Medical Corporation to deliver phase II of the Aldara Hospital and Medical Centre in Riyadh, Saudi Arabia. This is expected to have a construction value of approximately £70m.

The new facility will be a state of the art hospital and the largest outpatient centre in the Kingdom of Saudi Arabia and will provide some of the most advanced medical services in the world.

It is strategically located in Riyadh close to the King Faisal Specialist Hospital and Research Centre and also Al Faisal University. The Aldara Hospital and Medical Centre is being built to address growing demand for high-quality health care in Riyadh, the Kingdom of Saudi Arabia and in the wider GCC region.

It will employ world-class medical staff, have an advanced IT platform, adopt the latest medical innovations and have leading-edge facilities for training and education. It is also expected to stimulate employment in the health care sector, offering opportunities for Saudi professionals to work in a leading, innovative facility.

Carillion selected as a partner by the Highways Agency for £184 million smart motorway contract and signs a £200 million support services contract with Nottingham University Hospitals NHS Trust

Highways Agency smart motorway scheme
Carillion has been selected by the Highways Agency as one of four contractors, together with Balfour Beatty, Costain and a BAM Nuttall/Morgan Sindall Joint Venture, who will transform 17 miles of the M60 and M62 into a 'smart motorway'. The scheme will use a range of innovative technologies, combined with new operating procedures, to control traffic flow actively. This includes variable mandatory speed limits and opening up the hard shoulder to traffic to reduce congestion and improve journey times and safety.

Carillion is one of the Highways Agency's four delivery partners on the Agency's National Major Projects Framework and this latest award follows the successful delivery by Carillion of four previous phases of the smart motorway programme on the M6 in the West Midlands. This latest scheme will be managed through a collaboration agreement under which the delivery partners will be able to share knowledge and best practice. Work on the scheme is scheduled to begin in July and be completed by Autumn 2017.

Trading Statement

First-half highlights

· First-half performance in line with expectations and full-year targets unchanged
· First-half revenue expected to be slightly lower, as previously announced, but on track to resume revenue growth in the full year
· First-half underlying earnings in line with expectations, with a slightly improved operating margin
· New order intake remains strong, with first-half orders and probable orders of £2.7 billion
· Cash flow expected to be strong with profit fully cash-backed and average net debt reducing

Liverpool Football Club Main Stand Expansion £75m

Carillion appointed preferred bidder for Liverpool Football Club's Main Stand Expansion and the associated public realm improvements, estimated to be worth in the region of £75 million

Carillion has been selected as the preferred bidder to expand Liverpool Football Club's Main Stand and the associated public realm improvements. Work on the project is expected to start later in 2014, subject to planning consent. It is expected to take approximately 20 months to complete and the construction costs are likely to be in the region of £75 million.

If planning permission is granted, the proposals would see the capacity of a new Main Stand rise by approximately 8,300, taking the overall capacity of Anfield to around 54,000.

Investec has reassessed it neutral recommendation on the construction group Carillion [LON:CLLN] and reckons it is now time to get off the fence.

In doing so it has gone to buy.

Admittedly with a 380p a share valuation that doesn’t leave much upside for the stock.

In its note to clients, Investec said: “We have been neutral for some time on Carillion, with concerns over cash and Middle East margins at the fore.

“However, the group has had a positive start to the year in terms of new contract wins and the net debt position is now likely to be better than we expect.”

It reckons the shares look like good value on just under 10 times 2014 earnings, underpinned by a secure and growing dividend.

“Whilst headline growth is likely to be muted in the near term, we believe numbers have now troughed and therefore upgrade to buy,” the broker added.

StockMarketWire.com
Carillion's joint venture with Amey has signed contracts with the Defence Infrastructure Organisation for a further three Next Generation Estate Contracts potentially worth up to £2.8bn including additional services and extensions. These three contracts form the final part of the Defence Infrastructure Organisation's (DIO) Next Generation Estate Contracts (NGEC) programme to maintain and upgrade defence infrastructure.

This announcement completes the NGEC facilities management contract awards programme and follows the announcement on 12 May that Carillion and Amey joint ventures had won the National Housing Prime contract and the Scotland and Northern Ireland Regional Prime contract.

The five NGECs won by the Carillion and Amey joint ventures have a total potential value of £4.5 bn.

A Carillion joint venture with Amey has been awarded the Regional Prime Central contract that is estimated by MoD to be worth in the order of £435 million over the initial contract period of five years, which can be extended by a further five years, subject to approval. This enlarged contract replaces the existing Regional Prime Contract Central, which is currently held by a Carillion joint venture with Amey and covers central and northern England and the whole of Wales, and the existing Regional Prime Contract East, as services in all these areas are being combined into one contract. Under this contract, the joint venture will provide a wide range of hard facilities and asset management services at more than 150 establishments containing more than 14,000 assets at sites including RAF Cranwell, Catterick Garrison, RAF Valley and MoD Stafford, together with the option to undertake capital works projects valued up to £3.93 million. Hard facilities management services will include planned and reactive building fabric and mechanical and electrical engineering maintenance and utility efficiency services. The Carillion joint venture has also been awarded the South East and South West Regional Prime contracts that are estimated by MoD to be worth in the order of £258 million and £265 million, respectively, over the initial contract period of five years. The South East contract will provide hard facilities and asset management services at 60 key sites, including Sandhurst, Horse Guards, HQ Land Andover and RAF Northolt. The South West contract will provide hard facilities and asset management services at 40 key sites, including RNAS Yeovilton, DE&S Abbey Wood, RAF Lyneham and Britannia Naval College. At DE&S Abbey Wood and the UK Hydrographic Office, the joint venture will provide a Total Facilities Management service, including catering, cleaning and other soft facilities management services in addition to hard services, which will be delivered by an in-house Carillion Amey team. All three contracts, together with the contract in Scotland and Northern Ireland, which was announced on 12 May, will deploy a service delivery model for hard facilities management services that will support the UK Government's objective of encouraging the use of Small and Medium-sized Enterprises. Both Carillion and Amey will also use these new contracts to create further opportunities to demonstrate their commitment to the Armed Forces Corporate Covenant, which helps ex-service personnel find employment and supports the provision of Reservists.

Possible Merger
In view of recent media speculation the Boards of Carillion and Balfour Beatty can confirm that, following an approach from Carillion to Balfour Beatty, they are engaged in preliminary discussions in relation to a possible merger of Carillion and Balfour Beatty.

The Boards of Carillion and Balfour Beatty believe that the merger of the two groups has the potential to create a market leading services, investments, and construction business of considerable depth and scale. Work is now underway to develop a strategy and outline business plan for a combined entity, underpinned by the evaluation of achievable synergies, future financing arrangements and a number of other essential supporting workstreams. In evaluating the merits of the merger, the two boards will, inter alia, wish to be satisfied that such a merger would lead to very significant value creation for the benefit of both sets of shareholders.

The two parties have agreed that Balfour Beatty's publicly announced sale process for Parsons Brinckerhoff, which is already underway, will proceed unaffected by this announcement, subject to achieving acceptable value and terms.

The Boards of Carillion and Balfour Beatty note that they would only proceed with a merger if, inter alia, (i) both Carillion and Balfour Beatty were to conclude due diligence to their satisfaction; and (ii) the Boards of Carillion and Balfour Beatty were to recommend it to their shareholders. In accordance with Rule 2.5(c)(i) of the Code, Carillion and Balfour Beatty confirm that the pre-conditions referenced in (i) and (ii) above must be satisfied prior to the agreement of any transaction.

No final decision has been reached regarding the structure of any merger. Accordingly until further notice, for the purposes of the Code, both Balfour Beatty and Carillion will be treated as offeree companies.

glad i have these in my sipp though sold them from my trading portfolio a few weeks back, which is a bit of a shame

Shares in construction companies Carillion and Balfour Beatty soar on amid tie-up talk


Published: 08:36, 25 July 2014 | Updated: 20:33, 25 July 2014


Shares in two of Britain’s biggest construction firms soared yesterday amid talks of a merger to create a national champion worth more than £3billion.


Carillion, which recently won the contract to redevelop Liverpool FC’s Anfield Stadium, and Balfour Beatty, the builder of the aquatics centre at the London 2012 Olympics, said ‘preliminary discussions’ about a deal are underway.


The news sent shares in both companies soaring with Carillion up 7.2 per cent, or 24.3p, to 362.8p and Balfour up over 9 per cent, or 21p, to 253.1p.




The rally pushed the combined value of the groups to £1.3billion – enough to propel a merged group into the FTSE 100 index – with Carillion worth £1.55billion and Balfour £1.75billion.

Although Balfour is the larger of the two firms, and has a turnover of £10billion to Carillion’s £4billion, Carillion made the approach and is more likely to be the senior partner.


Balfour, which was founded in 1909 and has 40,000 staff, has been rocked by project delays and a string of profits warnings.




Shares lost a third of their value between March and early July and chief executive Andrew McNaughton was ousted in May after just 14 months in the job.


The company is now run by executive chairman Steve Marshall, the former Railtrack boss, and is in the process of offloading US design consultancy Parsons Brinckerhoff in an attempt to shore up its finances.


Carillion, which also has around 40,000 staff, has seen its shares rise by a quarter since December.


Chief executive Richard Howson is expected to run the combined company if the deal goes ahead.


The two sides said the combination has the potential to create a support services and construction business of ‘considerable depth and scale’.


They also said a deal would not affect the sale of Parsons.
Analysts at Liberum said a tie-up between Carillion and Balfour ‘could be the deal of this decade’.

Why the drop? Has the merger talks fallen through?

Here's a clue - Termination of Merger Discussions

Termination of merger discussions by Balfour Beatty plc ('Balfour Beatty') with Carillion plc ('Carillion')

Balfour Beatty announces that it is terminating discussions with Carillion regarding a possible merger with immediate effect. The termination of discussions follows Carillion's wholly unexpected decision to only progress the possible merger in the event that Parsons Brinckerhoff remained part of the potential combined entity. This change is contrary to the basis upon which the Balfour Beatty Board agreed to engage in preliminary discussions. It is also contrary to the joint announcement released on 24 July 2014 which confirmed that the sale of Parsons Brinckerhoff would be unaffected by the merger discussions and also a presentation to Balfour Beatty's Board by Carillion on 28 July 2014. This change in the proposed terms is not acceptable to the Board of Balfour Beatty.

Balfour Beatty will proceed in accordance with its own business plan, including the competitive sale process of Parsons Brinckerhoff currently well underway. It will also continue to actively progress its search for a Group CEO.

Balfour Beatty confirms there is no material new information on trading since 3 July 2014 and will publish its interim results on 13 August 2014.

This announcement, that Balfour Beatty has no intention to make an offer for Carillion, is made in accordance with Rule 2.8 of the Code. As a result of this announcement Balfour Beatty will be bound by the restrictions contained in Rule 2.8 of the Code. For the purposes of Rule 2.8 of the Code, Balfour Beatty reserves the right to make or participate in an offer for Carillion (and/or take any other action which would otherwise be restricted under Rule 2.8 of the Code) within the next six months following the date of this announcement in the circumstances set out in Note 2 of Rule 2.8 of the Code.

This announcement is not being made with the consent of Carillion.

Thanks for that sk. Back to square 1 then. Missed taking profit here.

Some intrigue in their last sentence above?

read the first part of the announcement too, and therein lies the clue ..... it's far from impossible that they're both still talking quietly

I sold my shares at 371.5p last week on the spike. Today I bought them back at 337 - a bit too soon as it happens.
Having read the CLLN announcement of the termination of talks, I would not be surprised to see CLLN announce a hostile bid for BBY. Perhaps something else will crawl out of the woodwork in the next week or so.

RBC outlining the options:
"We believe that Carillion has three options:
1. Back down regarding the PB sale. allowing Balfour Beatty to proceed with the disposal
2. Persuade the Balfour Beatty’s board to come round to their way of thinking – i.e. that PB is the “jewel in the crown” and highest margin asset.
3.Launch a hostile take over. Given they were only in preliminary discussion we do not believe that Carillion would have to wait before they can make a formal approach to Balfour Beatty shareholders.
Carillion would have to launch a formal take over bid for Balfour Beatty i.e they would need 90% shareholder approval (compared to 75% under a scheme of arrangement)
We believe any offer might be put forward predominately in the form of an all share deal, meaning that the terms of the deal would have to be favourable to Balfour Beatty shareholders, as it stands Carillion may not have the balance sheet flexibility to have a large cash component to their offer. Given this morning’s statement, it would appear that Balfour Beatty’s board would be unlikely to recommend the deal. Hence we believe Carillion would likely need to put together an indicative proposal and garner interest from Balfour Beatty’s shareholders.
We maintain that there is a lot of value that could be created with potentially £100m of synergies to come out of the combined entity."

Mirabaud note:
"The obvious conclusion and it seems highly likely that Carillion will mount a hostile bid for Balfour. Firstly, they have established that the market believes that a combination of the two would be a good thing, as evidenced by the increase in both companies’ share prices when talks were revealed last week. Secondly, if Carillion really do believe that PB is a keeper, they must think it is a very good business indeed. Their announcement states that they believe the combined business needs the more stable contribution that PB provides.
Any SOTP argument is going to suggest that Balfour is undervalued, (EMT passim) and frankly, Carillion’s interest confirms this. The evidence from Balfour Beatty in recent months has hardly weakened the argument for letting new management have a go.
The question is, how could Carillion finance a hostile move?
Their net debt of circa £200m is not that significant, but if they had to borrow to fund an acquisition, and if they paid 300p for BBY they might end up leveraged to over 5x net debt/EBITDA. Retaining PB means that asset disposals are a limited opportunity. So equity would have to be involved. Here the maths gets complicated, because Carillion trades on a single digit PE. At 300p, Balfour would be trading on almost 15x 2015 consensus earnings, so dilution beckons. But, on an EV/Sales basis, Balfour would stand at not much more than half the level of Carillion, even after the bid premium.
So near term dilution, in return for longer term earnings and capital upside if Carillion can unlock some of the balance sheet value within BBY and improve the performance of the operating companies. Carillion are weighing their options, rather than licking their wounds. They are clearly contemplating whether to make an offer or not. Balfour is in play and the rest of the industry will be taking a look too. Balfour’s insistence on selling PB is basically exposing the value of the balance sheet for all to see.
Carillion could walk away; they may not get support for a bid at a premium with a significant equity content involved. Even so, we doubt that Balfour can remain in its current form for too much longer. Either it starts to realise its own SOTP or others come along to accelerate the process. With the stock languishing at 0.2x EV/Sales, we can see significant long term upside, albeit with the risk that in the near term, trading in UK Construction Services seems unlikely to be helpful."

all of which must surely make BBY the better punt (closed at 244), though no real harm in holding both

Statement by the Board of Carillion
11 August 2014

The Board of Carillion notes this morning's announcement by Balfour Beatty.

The Board of Carillion will give further consideration to its position and will make a further announcement in due course. In the meantime, there can be no certainty that any offer will be made by Carillion or as to the terms on which any such offer might be made.

As required by Rule 2.6(a) of the Code, Carillion is required, by not later than 5.00 p.m. on 21 August 2014 to either announce a firm intention to undertake a transaction in accordance with Rule 2.7 of the Code or announce that it does not intend to undertake a transaction, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline may be extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code. Carillion understands that, in accordance with Rule 2.6(c), the Takeover Panel will take into account the views of Balfour Beatty in considering whether to grant such an extension.

This announcement is not being made with the consent of Balfour Beatty.

interesting that neither BBY nor CLLN have moved much this morning.
i think it more than likely that a new attempt will be made between the two, so a modest flutter with guaranteed stops may be worthy of serious consideration

Hmmm.

quite :-)

First Half Financial report

· First-half financial performance in line with expectations
- As expected, first-half revenue slightly lower, but well positioned to target revenue growth in the full year
- Underlying operating margin(1) increased to 5.5% (2013: 5.1%)
- Underlying profit before taxation(1) up three per cent to £75.9 million, despite a higher net financial expense
- Underlying earnings per share(1) maintained at 14.7 pence
- Strong cash flow with underlying operating cash conversion(1) of 127% (2013: 5%)
- Net borrowing at 30 June 2014 of £203.6 million (31 December 2013: £215.2 million; 30 June 2013: £270.8 million)
- Strong balance sheet, with over £1.1 billion of committed borrowing facilities and private placement funding

· Work winning remains strong
- £3.2 billion of new orders and probable orders in the first half
- Total orders plus probable orders increased to £19.5 billion at 30 June 2014 (31 December 2013: £18.0 billion)
- Pipeline of contract opportunities increased to £38.0 billion (31 December 2013: £37.5 billion)
- 93% revenue visibility(2) for 2014 (2013: 93%)

· Interim dividend increased by 2% to 5.6p (2013: 5.5p)

· Full-year targets for revenue growth unchanged, despite markets remaining challenging

(1)
The underlying results stated above are based on the definitions included in the key financial figures on page 3.
(2)
Based on expected revenue and secure and probable orders, which exclude variable work and re-bids.

Statement by the Board of Carillion


THIS ANNOUNCEMENT IS NOT AN ANNOUNCEMENT OF A FIRM INTENTION TO UNDERTAKE ANY TRANSACTION UNDER RULE 2.7 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "CODE") AND THERE CAN BE NO CERTAINTY THAT ANY TRANSACTION WILL PROCEED, OR AS TO THE TERMS OF ANY SUCH TRANSACTION.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

FOR IMMEDIATE RELEASE 14 August 2014


Statement by the Board of Carillion

Carillion has, since Monday morning 11 August 2014, held meetings with a number of Balfour Beatty's major shareholders. At the request of the Panel on Takeovers and Mergers and those shareholders, Carillion is now making public all material new information given during those meetings.

Synergies

The Board of Carillion is confident that, as a direct result of the merger, the cost-base of the combined group could be reduced by at least £175 million per annum by the end of 20161 and that earnings would consequently be significantly enhanced from that year2. These cost savings would represent a capitalised value of over £1.5 billion before any re-rating3.

As required by Rule 28.1(a) of the Code, Ernst & Young LLP ("EY"), as reporting accountants to Carillion, have provided a report stating that, in their opinion, the synergy statement has been properly compiled on the basis stated. In addition, Lazard, Greenhill and HSBC, as financial advisers to Carillion, have provided a report stating that, in their opinion and subject to the terms of such report, the synergy statement, for which the directors of Carillion are solely responsible, has been prepared with due care and consideration.

Substantial synergies have been identified across the following areas:

· Businesses and Functions: back office, head office, business and support function savings as well as from applying Carillion's business operating model to Balfour Beatty's UK business;

· Supply Chain: utilising Carillion's category management and demand planning solution, and through purchasing and procurement efficiencies;

· Information and Communications Technology ("ICT"): utilising Carillion's outsourced back office solution, and through standardisation of systems and processes;

· Property: consolidation of the two groups' property portfolios in overlapping areas, including head office; and

· Other: agency labour, fleet, insurance and general overhead savings, including through the application of Carillion's lean operating structure.


The Board of Carillion expects that it would deliver these synergies progressively, anticipating that 40% of them would be achieved by the end of 2015 and the full 100% by the end of 2016 (assuming, for these purposes, that completion of the merger occurred by 31 December 2014).

It is expected that the realisation of the identified synergies would result in one-off exceptional cash costs of approximately £225 million, largely incurred in financial years 2015 and 2016.

Please refer to Appendix I for further detail on synergies.

1 Statement made on the basis of publicly available Balfour Beatty information
2 This statement is not a profit forecast
3 Calculated using weighted LTM multiple applied to cost-base reduction achieved by the end of 2016. See Appendix II

Dividend

Carillion has proposed that Balfour Beatty's shareholders receive an additional cash dividend (or equivalent) of 8.5 pence per Balfour Beatty share (£59 million in total) at the time Balfour Beatty's final 2014 dividend would have otherwise been paid in 2015. This would be in addition to the final 2014 dividend they would be entitled to receive as shareholders in the enlarged group.

Carillion also proposed that the enlarged group would maintain Carillion's progressive dividend policy.

Financing

Based on initial discussions with banks and assuming the retention of Parsons Brinckerhoff, the Board of Carillion is highly confident that £3 billion of available funding would be accessible to the combined group, providing substantial headroom above its actual borrowing requirements after transaction costs and the costs of the proposed restructuring.


more....

Great market reaction today - was it to the results or the possibility of a deal with BBY? Perhaps both.

Rejection of Carillion's Proposal

The Board of Balfour Beatty has further considered the announcement from Carillion plc ('Carillion') dated 14 August 2014. The proposal remains unchanged to that rejected on 11 August 2014. The Board reaffirms its rejection of the proposal. A more detailed analysis is set out below.

In reaching its decision on the merger proposal, the Board has considered:

· the potential for synergies;

· cost and execution risks;

· a reduced exposure to recovery in UK construction;

· risk of revenue and cost leakage; and

· the impact of terminating the Parsons Brinckerhoff sales process.



The Board has also considered the opportunities represented by pursuing its independent strategy, the benefits of which will accrue 100% to its shareholders. These include:

· a recovering UK construction business;

· the opportunity to deliver further efficiencies;

· a strong US construction business in a growing market;

· a leading Investments business;

· material exposure to recovery in the UK; and

· the anticipated successful sale of Parsons Brinckerhoff


more...

I wonder if CLLN will go hostile now. BBY's shareholders must surely be hoping for something better.

Statement by Carillion

Carillion refers to the following statement attributed to Philip Green in an article published by the Sunday Times on 17 August 2014: "Our synergy numbers have been audited, and at £1.5bn it is virtually the same as the current market value of either company." Carillion wishes to clarify that, while its previous statement that "as a direct result of the merger, the cost-base of the combined group could be reduced by at least £175 million per annum by the end of 2016"1 has not been "audited" in the technical sense, as set out in Carillion's announcement made on 14 August 2014, an independent accounting firm has provided public assurance, having tested the basis of preparation of the statement in line with the requirements of the Code, and has publicly reported that it has been properly compiled on the basis stated in that announcement. Also, Carillion's previous statement that the cost savings it has identified "would represent a capitalised value of over £1.5 billion before any re-rating"2 has not been audited or reported on by an independent accounting firm. Rather, that number was calculated on the basis set out in detail in Carillion's announcement of 14 August 2014.

1 Statement made on the basis of publicly available Balfour Beatty information
2 Calculated using weighted LTM multiple applied to cost-base reduction achieved by the end of 2016. See Appendix I


As required by Rule 2.6(a) of the Code, Carillion is required, by not later than 5.00 p.m. on 21 August 2014, to either announce a firm intention to undertake a transaction in accordance with Rule 2.7 of the Code or announce that it does not intend to undertake a transaction, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline may be extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code. Carillion understands that, in accordance with Rule 2.6(c), the Takeover Panel will take into account the views of Balfour Beatty in considering whether to grant such an extension.

This announcement is not being made with the consent of Balfour Beatty.

Rejection of Carillion's Proposal

The Board of Balfour Beatty has considered the terms of the revised merger proposal from Carillion plc ("Carillion") dated 19 August 2014 and consulted with its major shareholders.

The revised proposal again fails to address the two key concerns that Balfour Beatty has consistently raised:

1. The considerable risks associated with the proposed business plan, including the strategy to significantly reduce the scale of the UK Construction business when it is poised to benefit from a recovery in the market; and
2. The continued intention to terminate the sale of Parsons Brinckerhoff at a point when it is reaching a successful conclusion.

Accordingly, the Board has unanimously concluded that the proposal is not in the best interests of its shareholders and has decided to reject the proposal. Therefore the Board will not be seeking an extension to the PUSU ("Put Up or Shut Up") deadline of 5pm on 21 August 2014.

The Board also notes that the revised proposal represents only a small value change in the terms compared to the proposal from Carillion rejected on 11 August 2014. Further details are set out within the Appendix.


more...

"Carillion has announced that it put an improved Merger proposal to Balfour Beatty. The Board of Balfour Beatty subsequently announced that it has considered the terms of the revised Merger proposal, consulted with its Major Shareholders and unanimously rejected the proposal. As a result Carillion is no longer pursuing such a Merger. For the purpose of Rule 2.8 and other relevant provisions of the Code, Carillion reserves the right to announce an offer or possible offer for Balfour Beatty within the next six months. There can be no certainty that any further offers will be made by Carillion for Balfour Beatty nor as to the terms of any such offer. Further information may follow in due course. "

Interim Management Statement

Trading remains in line with the Board's expectations and the guidance we gave when we announced the Group's half-year results on 13 August 2014.

Following our strong work winning performance in the first half of the year, during which we won new orders and probable orders worth approximately £3.2 billion, the successful mobilisation of new contracts, particularly in support services, will continue to be a major focus for the Group during the balance of 2014 and in the first half of 2015. Importantly, in winning new work we have maintained our highly selective approach to the contracts for which we bid and therefore the Group continues to target revenue growth in 2014 at an operating margin in line with expectations.

The Group also continues to have a robust balance sheet with strong cash flow and net borrowing reducing in line with expectations. Our cash flow performance continues to follow the profile we have consistently forecast, namely that following the completion of the planned rescaling of our UK construction activities the Group would return to positive net cash generation, as evidenced by our first-half results.

With trading in line with expectations, a strong order book and a substantial pipeline of contract opportunities, the Board's expectations for 2014 and the Group's prospects for growth over the medium term, remain unchanged.

Pre-close trading update

Carillion will issue a pre-close update on trading for 2014 on 10 December 2014, in advance of its preliminary full-year results announcement on 4 March 2015.

Decent enough statement skinny. Steady as she goes with no nasty surprises. Makes a mockery of the recent share price falls. Single figure PE and a 6% yield anyone?

It certainly is.

Re Contract

Chancellor of the Exchequer announces Carillion will be the first company to benefit from UK Export Finance's new Direct Lending Facility

The Chancellor of the Exchequer, George Osborne, has announced that Carillion will be the first company to benefit from the new Direct Lending Facility, which is being provided by UK Export Finance (UKEF) to boost UK exports.

Under the Direct Lending Facility, HM Treasury has made £3 billion available to support export finance on a first come, first served, basis that enables UKEF to provide funding at the Commercial Interest Reference Rate with partner banks arranging loans.

Carillion already has a strong relationship with UKEF, having secured a number of contracts in the Middle East and North Africa with the support of UKEF's Standard Buyer Credit Facility. The latest contract to be secured with the support of UKEF is a £75 million contract to deliver Phase 1 of the Dubai World Trade Centre District development for the Dubai World Trade Centre, using UKEF's new Direct Lending Facility with the loan being arranged by Deutsche Bank.

The contract involves the construction of a 146,000 square metre development between the current Dubai International Convention and Exhibition Centre and Emirates Towers in the heart of the city's Central Business District that will include an eight storey office building and a 588-room business and tourism hotel. The development will be designed to best-in-class quality standards and Phase 1 will include international Grade A quality offices, which have achieved LEED® Gold pre-certification from the US Green Building Council - the industry benchmark for green building performance covering design, construction, operations and maintenance. The technology solutions and infrastructure being planned align with the Dubai Government's Smart City strategic agenda.

Commenting, Chancellor of the Exchequer, George Osborne said: "Helping British companies to access global markets is a key part of our long term economic plan. So I'm delighted to announce the first deal supported by UK Export Finance's Direct Lending Facility, along with the twenty financial institutions that are going to help us deliver the loans.

"It is great to see successful companies like Carillion winning contracts around the world. This deal, the first in a pipeline of many will help us reverse the age old trend of not exporting enough, boosting growth and creating jobs."

Carillion Chief Executive, Richard Howson, added: "We have built a strong relationship with UKEF, which is helping companies like Carillion to use its sector-leading expertise and reputation for quality, reliability and safety to win major contracts. The new Direct Lending Facility is an exciting development, which will further enhance our ability to use Carillion's world-class skills to compete and win contracts in our international markets."

StockMarketWire.com
Carillion has been selected by the Highways Agency as one of five contractors that will deliver highway schemes with values between £100 million and £450 million, which form part of the HA's Collaborative Delivery Framework (CDF).

The CDF, under which the Agency plans to invest some £5 billion in England's motorways and major A roads over the next five years, is the largest framework the Agency has ever awarded and will allow the Agency to deliver large scale improvements to strategic roads, enabling economic growth across the country.

Of the £5 billion of planned investment, approximately £2.7 billion will be spent on schemes valued at between £100 million and £450 million. As one of five contractors appointed to deliver these schemes, Carillion expects to generate up to some £500 million of revenue from the Framework over the five year period.

StockMarketWire.com
Carillion has achieved financial close on the Sunderland City Council regeneration programme potentially worth up to £800m.

Carillion says that following its announcement in November 2013 that it had been selected as the preferred bidder to deliver the city's regeneration programme, the terms of the joint venture between Carillion and SCC have been agreed and the project has achieved financial close. This innovative contract, which will initially focus on the redevelopment of key sites across the City, is potentially worth up to £800 million to Carillion over the 20 year life of the regeneration programme.

Chief executive Richard Howson said: "We are delighted to have achieved financial close on this major innovative programme. I believe our success reflects Carillion's ability to offer solutions tailored to the specific needs of our customers and our ability to provide a fully integrated solution that will deliver the immediate and long-term services required by the Council. "We look forward to working with Sunderland City Council and to engaging with local communities and businesses to deliver the Council's vision for the City, which will bring major benefits to the people of Sunderland and act as a catalyst for further inward investment."

The gentle down trend in play since March has now been broken and it looks as though we have finally put the BBY debacle behind us. Onwards and upwards. This surge north is looking good and strong. 360 next stop I would have thought.

I would be happy with 390p and might seriously consider taking profit......hopefully ahead of everyone else!

StockMarketWire.com
The UK Ministry of Justice has appointed Carillion as the preferred bidder for two contracts to provide a range of services to the National Offender Management Service for public sector prisons in two geographical areas.

One contract will provide services in prisons in London and East of England and the second will provide services in prisons in the South West, South Central, Kent and Sussex.

These contracts, which cover approximately 50 prisons, will be for an initial five-year period, but with the potential for two subsequent one-year extensions, subject to satisfactory performance.

Carillion will provide a wide range of hard and soft facilities management services, including mechanical and electrical engineering maintenance, building fabric maintenance, energy and environmental services, waste management, escort services for contractors, cleaning services and minor building works.

Mobilisation is scheduled to begin in 2015 with a contract start date of 1 June 2015. The combined revenue from these two contracts is expected to be between £35 million and £40 million per annum.

Odd that they should choose a good news day for a little pull back. Hopefully just a pause for breath. Looking at that chart I reckon 380 would be a good point at which to take a trading profit.

What am I missing?

As LG posted good news!

Projected EPS 2015 35.25, 2016 37.5, yields 5% and 5%

Conservatively worth 400p?

Poor choice of word "Conservatively"!

Looks like it is going down. Might get in at 300p. Seems to be a good trading stock.

do you really mean 300, because that's a hell of a drop?
340 looks a possible where sp hits 200 dma

StockMarketWire.com
Carillion has agreed to acquire a 60% interest in the trade and assets of Rokstad Power Corporation.

This will significantly enhance Carillion's skills and prospects for growth in servicing the rapidly expanding electric power transmission and distribution market.

Rokstad, which is based in British Columbia, Canada, provides a full range of transmission and distribution power line services, including specialist live line operations, and has expanded its operations in strategic locations primarily across Canada. With over 600 employees and an extensive fleet of specialist equipment, Rokstad is well positioned to meet the growing demand for electricity and the need to rebuild ageing electric power infrastructure.

Rokstad is a family owned company, which has been led very successfully by chief executive Aaron Rokstad and president Bernie Rokstad, who will continue to lead the business following this acquisition.

The total cash consideration for this acquisition of up to £33 million is dependent on the financial performance of Rokstad.

The consideration will be paid in instalments over the period to July 2017, with payments of £11 million and £10 million in 2014 and 2015, respectively. The instalments to be paid in 2016 and 2017, which are dependent on financial performance, will be capped at a combined total of £12 million.

Under the acquisition agreement, Carillion has also committed to acquire the remaining 40 per cent interest in Rokstad after five years at a multiple of 4.5 times Rokstad's 2019 EBITDA, capped at a maximum additional consideration of £42 million.

StockMarketWire.com
Carillion has been awarded support services contracts by Heathrow Airport Limited and by Barts Health NHS Trust, which together are worth approximately £80 million.

At Heathrow Airport, Carillion will provide a range of soft facilities management services together with fabric maintenance for Terminals 3 and 5, under a contract that will run until March 2019.

At Terminal 2, Carillion is providing hard facilities management services, including planned and reactive mechanical and electrical engineering maintenance, under a contract, which, including options for extensions, will run until December 2017. These contracts are in addition to the contract Carillion already has to provide a range of hard and soft facilities management services for Terminal 1.

These latest contracts extend the scale and scope of the support services that Carillion provides at Heathrow Airport for Terminals 1, 2, 3 and 5 and further consolidates the strong relationship that Carillion has established with Heathrow Airport Limited.

Carillion has also signed a 22-month contract with Barts Health NHS Trust to provide soft facilities management services to a number of the Trust's properties, including Whipps Cross and Mile End hospitals. This extends the relationship Carillion has with Barts Health for which Carillion already provides soft services at the prestigious Barts and Royal London hospitals.

Carillion chief executive Richard Howson said: "We are delighted to have been selected for these contracts, which continue our success in work-winning in 2014. We look forward to building on the strong relationships we have developed with Heathrow Airport Limited and with Barts Health and to working with them to support the delivery of an excellent experience for customers and patients."

chart (see top of page) doesn't look bad either

StockMarketWire.com
Carillion has signed a £75m contract with Liverpool Football Club to increase the main stand at Anfield.

Work on the project, which will add around 8,500 seats to the stand and increase the overall capacity of Anfield to some 54,000, is expected to start this week and is scheduled for completion in the third quarter of 2016.

Carillion was announced as preferred bidder in July.

Trading Statement

EARNINGS IN LINE WITH EXPECTATIONS

· Strong work winning performance - £4.6bn of new work won in the year to date
· Expect the Group's order book plus probable orders at the year end to be over £18.5bn
· Pipeline of contract opportunities of over £39bn
· Contract selectivity continues to underpin margin performance
· Net debt before acquisitions reducing as expected
· 85 per cent revenue visibility for 2015

Re Contract

Carillion joint venture appointed as the Selected Bidder for £190 million Public Private Partnership project to deliver the Midlands Private Finance Batch under the Priority School Building Programme (PSBP)

Carillion Convertible Bonds Offering

StockMarketWire.com
A consortium comprising Carillion, Balfour Beatty and Galliford Try has npw achieved financial close to finance, design build and operate the Aberdeen Western Peripheral Route/Balmedie to Tipperty Project.

The project, which is estimated to be worth in the region of £550 million, is being delivered in partnership with Transport Scotland, Aberdeen City Council and Aberdeenshire Council and is being procured under the Scottish Government's Non-Profit Distribution (NPD) model.

Carillion expects to invest up to £20 million of equity (one third share) in the project and to have a one third share of the construction revenue. Following the completion of construction in winter 2017, the route will be managed and maintained by Aberdeen Roads Limited for 30 years.

StockMarketWire.com
Carillion has been selected by Argent as the preferred bidder to deliver three new prestigious buildings at the King's Cross regeneration project.

This will involve the design and construction of a large commercial building and two new high-class residential buildings, all of which are in the North Zone of the development.

The combined value of the three buildings will be in excess of £100 million. Construction will commence in the later part of 2015 with completion scheduled during 2017.

Carillion chief executive Richard Howson said: "I am delighted that Carillion has been selected by Argent to design and construct these prestigious new buildings at King's Cross. This builds on the strong long-term relationship we have established with Argent that I believe reflects our reputation for high-standards of quality, value for money and sustainability."

StockMarketWire.com
Carillion has completed its acquisition of a 60% interest in the trade and assets of Rokstad Power Corporation.

The acquisition was first announced at the beginning of the month.

Rokstad, which is based in British Columbia, Canada, provides a full range of transmission and distribution power line services, including specialist live-line operations.

Carillion says that the acquisition will significantly enhance its skills and prospects for growth in servicing the rapidly expanding electric power transmission and distribution market.

Re Contract


Further to the announcement on 19 November 2014 that the UK Ministry of Justice had selected Carillion as the preferred bidder for two contracts to provide a range of hard and soft facilities management services to the National Offender Management Service for public sector prisons in two geographical areas, Carillion announces today that it has signed these contracts.

One contract will provide services in prisons in London and the East of England and the second will provide services in prisons in the South West, South Central, Kent and Sussex.

The contracts, which cover approximately 50 prisons, will be for an initial five-year period, but with the potential for two subsequent one-year extensions, subject to satisfactory performance. Mobilisation has begun with service delivery due to commence on 1 June 2015.

StockMarketWire.com
Berenberg has downgraded its recommendation on integrated support services company Carillion (LON:CLLN) to 'hold' from 'buy' in its note on construction contractors, today.

While acknowledging the stock is a solid way to play a UK construction recovery and that the company should return to revenue and earnings growth in 2015, the broker reckons consensus earnings estimates already reflect this.

Analysts left their price target unchanged at 380 pence a share, indicating around 8 per cent potential upside.

However, earnings per share estimates have been increase by 3 and 5 per cent for fiscal years 2014 and 2015, respectively.

Looking a bit groggy after a decent run. Finals due tomorrow. I just hope that nothing bad has leaked to cause this weakness.

banked my (sipp) profits here yesterday ..... there was actually a bearish note in one of the papers over w/e - probably ST


not quite the same sector, but you may want to take a peek at TPK after some excellent results today
some chunky profit-taking arguably gives good buying opportunity

StockMarketWire.com
Carillion reports full-year earnings in line with expectations on revenues stable at £4.1bn.

Underlying profit from operations rose by 1% to £216.9m on margins unchanged at 5.6%.

Underlying profit before taxation fell by 1% to £172.9m and underlying earnings per share were down 3% at 33.7p.

Profit before taxation rose by 29% to £142.6m and basic earnings per share increased by 20% to 28.0p.

Chairman Philip Green said: "In 2014, our markets remained challenging and we continued to be very selective in choosing the contracts for which we bid in order to maintain margin discipline, which continues to be a key element of our strategy. Looking forward, we expect the steady improvement in our markets that began in 2014 to continue in 2015, subject to a sustained macro-economic recovery. We have also continued to strengthen the Group's position in growth markets, notably in support services through a further bolt-on acquisition in Canada. Therefore, with strong cash flow, a high-quality order book, record revenue visibility and a growing pipeline of contract opportunities, we continue to believe the Group is well-positioned to make progress over the medium term."

Separately, Carillion announced that it has been appointed by Scape Group as the sole provider for a new facilities management framework with a value of up to £1.5 billion over a six-year period.

Scape, which is a public sector owned built environment specialist, offers a full suite of national frameworks and selected Carillion ahead of other competitors, because it offered the best quality and value for money.

This is the first framework of its kind, which is available to any public sector body in the UK, that offers a full suite of both "hard, " (including preventative and planned maintenance) and "soft" (including cleaning, catering, front of house) facilities management services. Other services that are also available through the framework include, but are not limited to, car park management, Health and Safety advice, consultancy, grounds maintenance and the management of internal office mail and messaging services. The framework is OJEU approved, which simplifies the procurement process so that users can develop and procure services within a four-week period.

StockMarketWire.com
Carillion has been awarded a £91m contract by Helical Bar to deliver Phase 1 of its Bart's Square development in the City of London.

The first phase of this development includes residential, offices and mixed use facilities on a 2.3 acre site that includes the area formerly occupied by Barts Hospital.

Phase 1 demolition is underway and construction will begin in the summer with completion scheduled for the summer of 2017.

Carillion has also won a £33m contract for residential developer, St George Central London, to build 177 new apartments at the Beaufort Park development in North London.

This will be Phase 10 of the Beaufort Park project, which is being built for the Notting Hill Housing Association to provide affordable homes. Work on the site has started and completion is scheduled for the autumn of next year.

Carillion's chief executive, Richard Howson, said: "Winning these prestigious contracts builds on the strong, high-quality order book we have in our UK construction services business.

"We are delighted to be working with Helical Bar and St George on these projects and share their vision of not simply constructing buildings, but helping to create communities in which people enjoy living.

"We also remain committed to working with local suppliers and to creating jobs through these projects, by recruiting local people wherever possible and we will also be offering opportunities for young people who are training as apprentices with Carillion."

StockMarketWire.com
Carillion has won UK construction contracts worth £123m.

It has been awarded contracts and preferred bidder positions by the Select Property Group, to deliver residential schemes at three site across the UK and been selected for a scheme by Highways England.

In Newcastle it will work on a £17m contract to construct a 260 bed student residence under Select Property Group's Vita Student brand. The development involves the demolition of an existing office block and construction of the residential area on six storeys above commercial units. Work has now started and is scheduled for completion in May next year.

Select Property Group has also selected Carillion as the preferred bidder for a Vita Student scheme in Partick, Glasgow. This £32m scheme involves site remediation, construction of a 501 unit residence, a communal hub, significant retail units and associated car park works. The project is due for completion in February 2017.

In addition Carillion is the preferred bidder to deliver 260 luxury managed apartments in central Manchester under Select Property Group's newly-launched CitySuites brand. The contract is worth £34m and is due for completion in January 2017.

Highways England has appointed a joint venture in which Carillion has a 50% interest to build the £85m A5-M1 Link Road Dunstable Northern Bypass to improve the east-west connection between the A5 and M1. This new 2.8 mile two-lane dual carriageway, with three new junctions, will improve journey times for long-distance traffic that will be able to use the A5-M1 link as an alternative to the current route through the town centre.

Carillion's chief executive, Richard Howson, said: "Work winning in UK construction continues to be strong and these recent contract wins have further strengthened our substantial, high quality order book, which we have created through consistently applying our strategy of focusing on large contracts and long-term customers. We look forward to working with the Select Property Group and with Highways England to deliver these important contracts."

And on the other hand tucked away in the RNS it loses more contracts than it wins.

I am patiently watching for an entry point

On 25 February 2015 Al Futtaim Carillion (AFC) was announced as the preferred bidder for two projects for Meraas, a Dubai-based holding company. In respect of one of these projects, a GBP225 million mixed-use development on the Dubai Creek waterfront, AFC has since agreed with Meraas that given this development has become highly dependent on an associated major marine works contract, AFC will not proceed with the waterfront development, which will now be delivered by the marine works contractor

CC doesn't this indicate that CLLN unlike BBY they haven't been putting in grossly unprofitable contract tenders and taking on loss making contracts!

Declared short interest is currently 8.3% which seems quite high.
Entry point about 300p maybe, CC?

Current dividend yield 5.5%. Tbh I had originally planned to enter at 320 but support at 330 held for far longer than I thought and once it went the trip to 320 took far less time than I expected.

I will probably hold off buying for now and see what happens as a number of the other construction companies/builders look far more attractive than they did a month ago.

Anything between 300 and 315 looks like a great entry point to me.

Ex-divi 14th May (12.15p)

Short interest in this company seems to be increasing all the time. Now 9.8% which is a bit worrying. Was tempted by the divi but assume the sp will dive ex the divi date.

I'm really struggling with this stock. I see 320 as a good price to enter based on sector and dividend but as soon as this goes XD, we get a golden cross with the 50 smacking through the 200. I will continue to wait but in an indecisive manner

Trading statement on tomorrow!

StockMarketWire.com
Carillion has reported that trading in the year to date is in line with its expectations and the steady improvement in its markets that began last year has continued in 2015.

It says that with a high-quality order book and pipeline of contract opportunities, combined with its strong balance sheet, the Group expects to deliver revenue growth in 2015, with margins and cash flow in line with the guidance given when it announced its results for 2014.

StockMarketWire.com
Integrated support services company Carillion has acquired Outland Group, a leading provider of remote-site accommodation and associated services that operates across Canada.

Outland is a privately-owned business, which started in 1985, and which provides a complete range of remote-site services including accommodation, camp management, catering, maintenance and housekeeping to public and private sector customers across a wide range of growth sectors, including mining, utilities, forestry, gas and oil, in which it has strong positions.

The existing senior management team of Simon Landy, David O'Connor and Jeff Taylor, who were also the major shareholders in Outland, will join Carillion and remain with the business.

The acquisition complements and enhances the existing skills and capabilities of Carillion's support services business in Canada, in line with our strategy of accelerating the development and growth of our services activities across Canada. Currently, Outland is delivering projects or actively bidding for contracts in 9 of Canada's 13 Provinces and Territories. The consideration will be paid in instalments from Carillion's existing cash resources, with the total dependent on the financial performance of Outland, but capped at £63m.

The first instalment of some £11m, of which approximately £5m relates to the acquisition of cash and excess working capital on Outland's balance sheet, will be paid in 2015, with further instalments in 2016 totalling approximately £25m. The balance of the consideration will be paid in 2018 and 2019 and this will be based on 4.5 times 51.5 per cent of Outland's average EBITDA in 2015, 2016 and 2017, but capped so that the total consideration does not exceed £63m.

StockMarketWire.com
Carillion saw a significant increase in first-half revenue with continuing good progress on contract mobilisations and it is on track to deliver healthy revenue growth in the full year with profit and earnings in line with expectations

And the group also announced that its market leading business in Oman, Carillion Alawi, has been awarded a contract by BP to build the operational base and accommodation complex for its Khazzan gas project.

The contract involves the construction of accommodation facilities, including an operational base, a residential complex for 250 personnel and other infrastructure buildings in the Khazzan gas field, approximately 350km South West of Muscat. Work on the contract is expected to start in September 2015 and is scheduled for completion in mid 2017.

The group said the first half performance was in line with expectations with full-year targets unchanged.

The group says its order book and pipeline of contract opportunities remain strong, despite the expected impact of the UK General Election on public sector contract awards in the first six months of the year.

Carillion says: "Overall, the group remains on track to deliver revenue growth in the full year, with margins and cash flow consistent with previous guidance. Having entered 2015 with record revenue visibility, the Group continues to be in a strong position to deal with the inevitable effects of the UK General Election on the pace of contract awards, which has slowed, as expected, in the first half of the year. Therefore, with a strong order book, a growing pipeline of contract opportunities and the prospect of market conditions continuing to improve, our expectations for 2015 and for the medium-term remain unchanged."

StockMarketWire.com
Carillion, in joint venture with Kier, has been awarded a contract by Highways England for a package of smart motorway works that have an estimated value of up to approximately £475m. This latest package involves the transformation of four sections of motorway in England into smart motorways, namely the M6 between Junctions 16 and 19 and the M6 between Junctions 13 and 15, on the M20 between Junctions 3 and 5 and on the M23 between Junctions 8 and 10.

Smart motorways use a range of innovative technologies and operating procedures, to monitor and control traffic flow actively. This includes variable mandatory speed limits and converting the hard shoulder to an extra traffic lane to reduce congestion and improve journey times and safety.

Carillion chief executive Richard Howson said: "As a leading supplier to Highways England, we are delighted to have been awarded this latest contract for the smart motorway programme. We look forward to continuing our strong relationship with Highways England to improve journey times and safety on the M6, M20 and M23 motorways".

I really don't understand why the declared short position has steadily increased over the last six months to close to 15%. Were it not for that, I would be tempted to invest here. Presumably some financial institution knows something I don't.

playtech shorted by cqs .72% gone up ever since, ? on short site, institutions
no most of the time, but ODEY lost money on plus 500 they bought just before crashing. clln looks OK. BB

StockMarketWire.com
Carillion is one of only three companies to be selected for all three 'lots'in the UK Government's new facilities management services agreement, namely, Total Facilities Management, Hard Facilities Management and Soft Facilities Management.

In total, 19 suppliers have been selected for one or more of these three service lots.

The new agreement replaces the current framework for facilities management contracts and Central Government Departments, Executive Agencies and Non-Departmental Public Bodies will be mandated to use the new agreement to purchase facilities management services. The Government expects between £1.3bn and £4.1bn of services to be outsourced using the new Agreement, which will run until July 2019.

The new agreement is intended to provide public sector customers with a simplified and more efficient procurement framework that will reduce timescales for accessing facilities management services and the Government expects this to result in over £200 million of savings to public sector customers, while providing greater transparency and improved management information.

Carillion chief executive Richard Howson commented: "We are delighted to have secured one of only three places on this framework agreement for all three service Lots. Our selection further enhances our position as a leading provider of facilities management services to the public sector and should offer new opportunities to grow our UK support services business."

StockMarketWire.com
A Carillion joint venture with The Hospital Company, has been selected as the preferred bidder by the Sandwell and West Birmingham Hospitals NHS Trust to deliver the new Midland Metropolitan Hospital as a public private partnership under a 30-year concession contract using the UK Government's PF2 model.

The new state-of the-art hospital, which will have around 670 beds and 15 operating theatre suites, has been designed to meet the best international and national standards to make it truly patient focussed and to support the efficient delivery of high-quality clinical services.

The new hospital will also have a number of innovative design features including a fully enclosed Winter Garden, car parking within the hospital building on the ground and first floors to create a secure environment for both patients and staff and full separation of clinical activities and journeys from the public and non-clinical services. In addition, the design and construction of the hospital will meet the highest standards of sustainability.

Carillion expects to invest some £16 million of equity in the project, which will be built by Carillion at a capital cost of £297 million. Hard facilities management and life-cycle maintenance services will also be delivered by Carillion and these services are expected to generate approximately £140 million of revenue over the life of the concession contract.

Financial close is expected around the end of 2015 with construction starting early in 2016. Completion is scheduled for mid-2018, with the hospital opening in late 2018.

StockMarketWire.com
Carillion's underlying pre-tax profits rose by 11% to £84.5m in first half results which were in line with forecasts.

Revenues were up up 21% at £2,258.6m and underlying profit from operations rose by 16% to £112.5m. The interim dividend of 5.7p per dshare is up 2%.

And the group says it is on track to deliver full-year revenue growth with profit and earnings in line with expectations

Chairman Philip Green said: "I am pleased to report that Carillion has continued to perform in line with expectations, which reflects the actions we took during the economic downturn to position our businesses in markets where we can now achieve revenue growth, consistent with our targets for margins and cash flow. We have also made good progress with mobilising a number of major new contracts won in 2014. Therefore, with a strong order book, a growing pipeline of contract opportunities and the prospect of market conditions continuing to improve, our expectations for 2015 and the medium term remain unchanged."

Declared short interest now just under 18%.

StockMarketWire.com
Carillion has signed contracts, secured preferred bidder positions and been awarded frameworks, worth some £1.7bn, since 30 June 2015. Within this total are a number of major contract successes. In UK infrastructure services, Carillion and Carillion joint ventures have been selected by Network Rail for a number of frameworks and Early Contractor Involvement contracts from which Carillion expects to generate over £400 million of revenue.

These include the Midland Main Line Electrification project, which was recently "unpaused" by the UK Government, the Northwest Electrification project and the electrification of the Schotts line in Scotland. In UK Construction, Carillion has secured contracts and preferred bidder positions that are expected to be worth £311 million.

These include the recently announced A14 upgrade, which is being delivered by a Carillion joint venture for Highways England and which is expected to be worth some £146 million to Carillion, together with preferred bidder positions for a £90 million contract to build the Great Arundel Court development on London's Embankment and a £75 million schools contract for Peterborough City Council.

Chief executive Richard Howson said: "As we expected, the pace of work winning in the second half of the year has started to pick up. Since the half year, we have secured contracts, preferred bidder positions and framework agreements that are expected to be worth around £1.7 billion. With cash flow remaining healthy and these recent contract successes, we remain confident of achieving this year's targets, including ending the year with strong revenue visibility for 2016."

StockMarketWire.com
Carillion has signed a contract with the Homes and Communities Agency to deliver the regeneration of Tower Works in Holbeck Urban Village on Leeds' South Bank.

The 1.17 hectare site is a former industrial location housing three listed Italianate Towers from which the site derives its name.

Carillion will deliver 90,000 square feet of commercial office space, 24,000 square feet of retail, restaurant and bar spaces alongside a mix of one, two and three bedroom apartments and town houses, transforming the site into a mixed-use, sustainable community with its own distinctive character.

The combined value of the proposed development is approximately £80 million and a site-wide masterplan will be submitted for planning approval shortly, subject to which construction work is expected to begin in Spring 2016.

This contract adds to the £1.7 billion of new business that Carillion has won since the half year, as announced on 12 October 2015.

Super day on Friday. Now at 320p, a critical support / resistance level. If we can break through here and hold on Monday then we could be off to the races.

StockMarketWire.com
JP Morgan Cazenove has upgraded its recommendation on support services group Carillion (LON:CLLN) to overweight from neutral in its note on UK contractors, today.

The broker said: "Carillion's shares have declined by 16% since their last peak in August which we see as unjustified and as they are supported by a 10% FCF yield in FY16E and a 6% dividend yield; we upgrade to Overweight."

Analysts have cut their price target to 347 pence per share from 355 pence.

Looking at today's drop, one wonders if it was upgraded in order for Cazenove's clients to get out

StockMarketWire.com
Carillion's joint venture has signed a £125m contract for Phase 1A5 of Dubai Trade Centre District.

Carillion said Dubai World Trade Centre has awarded Al Futtaim Carillion (AFC) the main contract to deliver the next phase of work on the Dubai Trade Centre District (DTCD), a major development located between the current Dubai International Convention and Exhibition Centre and Emirates Towers in the heart of the city's Central Business District.

This phase comprises a 178,000 square metre development and includes two high-specification office buildings of eight and twelve storeys. The contract, which is worth approximately £125 million has begun and is scheduled for completion in Quarter 3 of 2017.

AFC is nearing completion of the earlier phase, which was awarded in 2014 and this latest award takes the overall value of AFC's work on this site to around £200 million.

The DTCD development is being designed to best-in-class quality standards and this phase will include international Grade A quality offices, which has achieved LEED Gold precertification from the US Green Building Council - the industry benchmark for green building performance covering design, construction, operations and maintenance.

The technology solutions and infrastructure being planned are aligned with the Dubai Government's Smart City strategic agenda, which was launched by Vice-President and Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum.

Carillion chief executive, Richard Howson, welcomed this latest award, citing the UAE as a core market for Carillion: "We are delighted to have been selected for the second phase of this major development in Dubai, where we continue to see more opportunities coming to market for which our capabilities and reputation for delivering to high standards of quality, safety and reliability are important to customers. We look forward to continuing our close relationship with Dubai World Trade Centre to deliver this important development".

StockMarketWire.com
Carillion and its subsidiary business, the Bouchier Group, have won support services contracts for a number of oil sector customers, including Shell and Canadian Natural Resources (CNRL), together with a maintenance and hard facilities management contract for the Department of National Defence in Canada.

Together these contracts are expected to be worth over £100 million over a period of up to five years.

The three-year contract for Shell (extendable to five years), which involves the provision of hard facilities management services to Shell's estate across the Province of Alberta, will start this month.

The contract extensions that have been won for CNRL involve the provision of a range of infrastructure and site support services. The contract for the Defence Construction Canada Forces Housing Agency involves the provision of hard facilities management services for 1,685 military accommodation units at Canadian Forces Base, Petewawa.

Carillion's chief executive, Richard Howson, said: "We are delighted to have secured further support services contracts for long-term customers, notably Shell, Canadian Natural Resources Limited and the Defence Construction Canada Forces Housing Agency, which further enhance the good progress being made by our support services business in Canada.

"We look forward to working with these customers and to building on the strong relationships we have already established through providing value-for-money services that deliver significant operational efficiencies."

uP 4.2%



Carillion on track with new deals of around £1bn

StockMarketWire.com

Carillion is on track to achieve full-year targets and has announced new contracts worth around £1bn.

The group reports strong revenue growth with operating profit in line with expectations.

Operating cash flow has remained strong with cash-backed profit and net debt in line with expectations and secured orders plus probable orders expected to remain strong at around £17bn.

High level of revenue visibility expected for 2016 of around 80 per cent and the pipeline of contract opportunities is expected to increase to over £41bn.

Main revolving debt facility extended by nearly three years to November 2020 at improved pricing.

Carillion says it has been awarded new contracts or is in one-to-one negotiations on support services contracts with an estimated total value of over £350m.

These include new facilities management contracts or contract extensions in the UK for Direct Line Group, Verizon and Virgin Media. In Canada, Outland, the business we acquired in May 2015, is in one-to-one negotiations with customers as their preferred delivery partner for a number of new contracts and contract extensions to provide remote site accommodation and associated services.

Still 18% declared short interest, which I don't understand.

High short interest is hedging or arbitrage.

I'm not entirely clear on the full details as I haven't researched. CLLN have some convertible debt. i.e. those who have lent, have locked in the profit on the conversion of the loans by pre-selling (shorting) the shares they will get on conversion.

In other words when the debt converts the lender will hold an equal amount of shares to match those they've pre-sold (shorted). Effectively closing the short will not require them to purchase shares in the market.

Thanks CC, that makes sense, but nevertheless that still means there is a large chunk of stock out there on loan, which dents investor confidence in the stock slightly.

Great update today. Everything a shareholder would wish to hear, and yet we can't hold on to a modest rise and then end the day down. Unbelievable.

It seems to me than virtually every share cannot hold onto modest gains at the moment. Well that's how it feels to me. Symptoms of a uncertain and bearish market.

If it's of any comfort I think we are getting close to the point of max pain. By close I'm thinking 3 months rather than next week. Eventually company results will overcome this sentiment

StockMarketWire.com
A Carillion joint venture, The Hospital Company (Sandwell) Limited, has achieved financial close on the Midland Metropolitan Hospital public private partnership project in Birmingham.

This follows an announcement on 11 August that the JV had been selected by the Sandwell and West Birmingham Hospitals NHS Trust as the preferred bidder to deliver this project.

The new state-of-the-art hospital, which will have around 683 beds and 13 operating theatre suites, has been designed to meet the best international standards to make it truly patient focussed and to support the efficient delivery of high-quality clinical services and also the highest standards of sustainability.

The hospital will also have a number of innovative design features, including a fully enclosed Winter Garden, car parking within the hospital building on the ground and first floors to create secure environment for patients and staff, and full separation of clinical activities and journeys from the public and non-clinical services.

Carillion will invest £13 million of equity in the project, which Carillion will build at a capital cost of £297 million. Construction will start in early 2016 and completion is scheduled for mid-2018, with the hospital opening in late 2018.

Carillion will also deliver hard facilities management and life cycle maintenance that is expected to generate approximately £140 million of revenue over the 30-year life of the concession contract.

As a leading provider of apprenticeships and training, Carillion will use this project as a further opportunity to provide training and apprenticeship opportunities for local people as well as maximising the use of local suppliers.

StockMarketWire.com
Carillion reports a full year performance for the year to the end of December in line with expectations.

Revenues rose by 13% to GBP4,586.9m with underlying profit from operations up 8% at £234.4m. Net borrowing reduced was to £169.8 million at 31 December (2014: £177.3 million).

New orders and probable orders totalled £3.7 billion (2014: £5.1 billion), reflecting the expected impact in the first half of the UK General Election, with £2.7 billion secured in the second half of the year.

Proposed full-year dividend increased by 3% to 18.25p (2014: 17.75p).

Chairman Philip Green commented: "Our performance in 2015 reflects the benefits of our consistent and successful strategy, which enabled us to rescale and reposition our business during the economic downturn in order to take advantage of opportunities for growth as market conditions improve. Growth in revenue, underlying profit before taxation and earnings per share was primarily organic, following the successful mobilisation of a number of major new contracts, supplemented by two bolt-on acquisitions, the Rokstad Corporation and the Outland Group, which have significantly enhanced our support services business in Canada. With a strong, high-quality order book, a large and growing pipeline of contract opportunities and the financial strength to support our strategy for growth, the Group is well positioned to make further progress in 2016."

JP Morgan Cazenove today downgrades its investment rating on Carillion PLC (LON:CLLN) to neutral (from overweight) and cut its price target to 309p (from 347p).

StockMarketWire.com
Carillion has clinched new contracts worth £600m and says it remains on track to make further progress in 2016.

In a trading update Carillion says it continue to expect its first-half performance to be led by revenue and margin growth in support services, with this segment of its business moving towards two thirds of the group's total underlying operating profit.

It adds: "The Group's total first-half revenue is expected to increase and offset the effect on first-half profit of a slight reduction in underlying operating margin, because, as previously indicated, the quantum of equity sales in Public Private Partnership projects was lower than in the first half of 2015 and the one-off contribution to profit from the reorganisation of our Middle East labour facilities in the first half of 2015 was not repeated in 2016.

"We expect average net borrowing to be in line with the full-year average in 2015 of some £539 million. As previously indicated, net borrowing at 30 June 2016 will increase and is expected to be in the region of £295 million, which reflects a number of temporary factors, including the effect of paying the final dividend for 2015 in June 2016, coupled with the effect of the recent adverse movement in the US$ exchange rate on the Group's US private placement borrowing. However, we expect net borrowing to reduce by the year end and our full-year expectations for cash flow and net borrowing remain unchanged."

Looking ahead, the group says it continues to expect its full-year performance to be led by revenue and margin growth in support services, with Public Private Partnership projects, Middle East construction services and construction services excluding the Middle East also performing in line with expectations. And it says with revenue visibility for the full year of 97 per cent and a strong pipeline of further contract opportunities, the group remains on track to make further progress in 2016.

It says the referendum vote in favour of the UK leaving the European Union has obviously created uncertainty for the UK economy as a whole and therefore for businesses generally, including Carillion, and it is clearly too early to predict the extent to which businesses will be affected by this result. Carillion says it has no significant operations in Mainland Europe and prior to the referendum it undertook extensive work to assess the possible impact on its business of a vote to leave and it has put in place robust plans to manage this outcome.

The group separately announced that its market leading business in Oman, Carillion Alawi, has signed a 4.5-year contract extension for Petroleum Development Oman to continue the provision of integrated facilities management services at 12 locations across Oman, worth £240 million.

Carillion has also been awarded two contracts by the Northern Ireland Housing Executive to deliver maintenance services for its housing stock, worth up to £366 million over a period of up to 10 years, of which some £60 million was included in the Group's order book at 30 June. We expect the balance of the £366 million to be added to the order book during the life of these contracts.

These latest contracts take the total value of new orders and probable orders won by Carillion in the first six months of 2016 to approximately £2.5 billion.

StockMarketWire.com
Carillion reports a first half performance in line with expectations led by strong growth in support services.

Revenues were up 10% at £2,487.1m with underlying profit from operations flat at £112.7m (H1 2015: £112.5m). Underlying profit before taxation was also flat at £84.5m.

Underlying earnings per share rose by 1% to 16.0p and pre-tax profits were up 24% at £83.9m.

Basic earnings per share rose buy 24% to 15.8p and the interim dividend is up 2% at 5.8p per share.

Chairman Philip Green said: "I am pleased to report that the Group's first-half results are in line with our expectations, led by a strong performance in our support services business, which accounted for nearly two thirds of the Group's underlying operating profit. New order intake in the first half of the year has been strong and continues to reflect the success of our strategy and strength of our business model. Overall, we remain on track to make further progress in 2016."

StockMarketWire.com
Carillion has been selected by Centrica as preferred partner to deliver facilities management and project services for an initial period of five years, which can be extended to seven years.

The contract has an estimated value to Carillion of some £90 million over five years with service delivery scheduled to start in December 2016.

Carillion has worked in close partnership with Centrica for over a decade as managing agent, helping to deliver significant value to Centrica's British Gas business. The new contract builds on this successful relationship with an extension of scope to a Total Facilities Management service.

Under the new contract Carillion will provide a wide range of hard and soft facilities management services, including asset surveys and planning, planned and reactive maintenance, cleaning, security and catering for Centrica's 115 locations in the UK and Republic of Ireland, together with the delivery of certain construction projects for Centrica.

Carillion chief executive, Richard Howson, said: "We have worked closely with Centrica since 2005 and built a strong partnership. We are delighted to be extending this relationship, which is based on a one-team approach in which Carillion and Centrica work together to deliver award-winning standards of facilities management and customer service across all Centrica and British Gas sites."

Carillion Joint Ventures awarded construction and support services contract by UK Ministry of Defence worth over £1.1 billion

Joint Ventures between Carillion and KBR (50:50) have been awarded construction and facilities management support services contracts to support the Army Basing Programme (a series of unit moves and re-roles within the UK, and the return and resettlement of troops from Germany by 2019) - with delivery across Salisbury Plain Training Area and at Aldershot - in total worth over £1.1 billion.

The Aspire Defence Capital Works Joint Venture will design and construct 130 new buildings, together with extensions and alterations to existing buildings and associated infrastructure. The construction works have an estimated value of £680 million, of which Carillion's share will be 50 per cent or some £340 million. Work is expected to start immediately with completion scheduled for 2020.

StockMarketWire.com
Carillion says its performance is meeting forecasts and it expects strong growth in total revenue and increased operating profit.

The group says trading performance in 2016 continues to be led by revenue growth and a strong margin in support services and it expects net borrowing to reduce from the half year level.

Highlights:
- New orders plus probable orders in 2016 expected to reach £4.5 billion, with total orders plus probable orders of approximately £16 billion (December 2015: £17.4 billion) by the year end - Visibility of revenue from framework contracts expected to be approximately £1.5 billion - Revenue visibility for 2017 of around 70% (December 2015: 84%) - Pipeline of specific contract opportunities broadly unchanged at over £41 billion

Carillion also said its Canada subsidiary, Rokstad, has been selected by Manitoba Hydro as the preferred provider for the next phase of its Bipole lll high-voltage transmission line project, which has an estimated revenue value of £120 million.

The project involves clearing rights of way, the installation of access roads, foundations and anchors, the assembly of towers and the stringing of cables for three packages of the Bipole lll project, which includes 1,384 km of transmission lines and two converter stations, starting at Keewatinohk in Northern Manitoba and ending at Sandy Bay Ojiway First Nation in Southern Manitoba. When the whole Bipole lll project is completed, it will deliver renewable energy to Southern Manitoba and to the United States.

Date Broker New target Recomm.

7 Dec Peel Hunt 275.00 Hold

1 Nov Jefferies... 360.00 Buy

StockMarketWire.com
Carillion telent, a 60:40 joint venture, has signed a three-year extension (extendable to 5 years) to its framework agreement with BT's Openreach.

Carillion telent will provide a wide range of services including the maintenance, extension and repair of the telephone and data network in the North East, Midlands & Wales, South West and London & North Home Counties of England.

The extension also includes the delivery of asset assurance works, notably poling and related activities, for England and Wales.

The initial 3-year period runs until the end of 2021.

Carillion chief executive Richard Howson said: "We are delighted to have agreed this extension to our framework agreement with Openreach that reflects the strong partnership we have built with Openreach over the last eight years as its main delivery partner for the management, maintenance and upgrading of its broadband network.

"We look forward to continuing this relationship and to supporting Openreach in delivering its objectives for further enhancing the services it provides for its customers."

Has a nice forecast yield, if paid!

sp wise this has been abysmal.
2517

One to watch. The pension deficit and debt looks pretty scary thus the continued fall in price despite 9% dividend.

Inflation would help the pension deficit but then the interest on debt rises.

23% short interest.

I see no reason to buy yet given much safer dividends on PSN and TW. I will re-assess if the share price goes sub 200.

Results soon...

You have made me put my money back in my pocket.


ummning and aaaahing on CLLN or CARD?

Don't let me put you off Fred. I haven't fully done my research yet as it isn't close enough to my buy price.

According to the guys and girls over on advfn, the annual interest payment is around £50m, which is pretty steep for a company with a profit of £139m last year. I need to check the interest payment.

As far as i read it if interest rates goes up that helps solve their pension deficit but then they are still screwed with interest payments.

Risk and reward and all that. I think there's a trade here at the right entry as once the shorts start reversing that's alot of stock to be bought. Just not sure where the entry point is!

CC.

I use Sharescope and Sharepad.

I have been watching CLLN and CARD for months

I already hold some of CLLN and was thinking of increasing hold a little.

But revised my "guesswork" and bought CARD.

Have a look at CARD.

Check forecast yields. There are conflicting "guesses" but TPs are good and I can't see any holes in the financing, but I am not the brightest on "Accounts".



+

Someone just bought 531,000 of these at 16 35 pm .

That's probably Fred just adding to his holding.

Sorry about that!

But I tried to help.

Ps. also have held some SBs for a while.

Always thought he was a closet millionaire you know .

Inherited money on my 4 wife's side.


That is why I married her.

The 535k was the closing auction. It was over a million the day before.

It looks like it's consolidating here to me and trying to bounce.

However, I'm waiting. With the FTSE and Dow so high I would like to get see what happens on a bad day on FTSE.

I guess I'm pretty indifferent to this trade atm. Got my eye at BP. too if it retraces some more

Results today , seem ok on the surface but ? .

But... why did the sp drop to 207p???

Pension deficit probably , and it's heavily shorted apparently .

Apart from Richard Tapp who owns 157K shares (not a lot really) it looks like the rest of the board own next to nothing of their own company, seeing that the sp is so low compared to the past, I would be very wary of putting my money into CLLN.

There that should give a boost to the sp.

The market is jumpy.

Possibly due to concentration on Basic earnings per share 28.9p 30.9p -6%.

Possibly, drop to 205 or 198p, before hopefully a rebound.

If you can trust "trades" buys up on sells.

W/s for proposed yield which is good at 8 +%.

You are probably right Vic.

From ii

I didn't see any mention of the pension deficit until the penultimate line of the report, which shows that the deficit has more than doubled from £317m to £663m.
To put into context, the current market cap is about £900m.

Some wise words I read today - Issue is competing demands on cash for pension deficit, bond holders and dividend payments. Something has to give...

I also read they intend to focus more heavily on UK and Middle East margins are slimming (drop in oil price???)

Now I love my country and think Brexit is overdone more than most but if the best strategy to deal with your debt is to expand in UK I'm not sure what that says about the other parts of their business.

I remain convinced their is big money to be made here once the shorts start closing but it's nowhere near low enough yet. I'm looking for 150 say.

StockMarketWire.com
Al Futtaim Carillion has won a £490m contract for Expo 2020 Dubai which will host around 180 nations and have an international audience of millions.

The Carillion JV has been awarded the contract to deliver the theme districts and public realm works at the World Expo site in Dubai South.

The JV has been appointed to construct a bespoke and unique phase of the World Expo development, which consists of 147,000 square metres of single storey basements and 98 pavilion buildings of up to storeys high, totalling a gross area of 220,000 square metres, together with 99,000 square metres of external works.

The contract will begin this month and is scheduled for full completion in mid-2019.

The theme districts of Expo 2020 Dubai are being designed to best-in-class quality standards and this development will achieve LEED Gold certification, as well as ensuring that worker welfare standards for all involved are exemplary and will set new industry benchmark standards.

Carillion chief executive Richard Howson, said: "We are delighted to have been selected for this flagship project and to be supporting Expo 2020 Dubai in its ambition to demonstrate to the world, Dubai's desire to lead economic growth and excellence internationally, in line with the vision of vice-president and prime minister of the UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum.

"This award further enhances our position as a recognised market leader and we continue to see good opportunities coming to market for which our capabilities and reputation for delivering to high standards of quality, safety and reliability are important to customers.

"We look forward to continuing the development our close relationship with Expo 2020 Dubai to deliver this important development."

Every little bit helps!

For the great unwashed, £490m is quite a wad of money, but of course some live on a higher plain! ;o)

Ah you mean freebe Alf.

Another bit of help!



Carillion wins £90m contract in Cyprus

StockMarketWire.com

The Defence Infrastructure Organisation has awarded Carillion a contract to design and build a new communications facility in Cyprus, which will be a single storey building, approximately 10,000 square metres in area, with temperature and humidity controlled environments.

Carillion said construction would start in April and was scheduled to be completed by the end of January 2019.

Chief Executive Richard Howson said: "We are delighted to have been selected by the Defence Infrastructure Organisation to design and build this project and we look forward to building on the strong relationship we have with the DIO as we work closely together to deliver this important new facility."


Story provided by StockMarketWire.com.


One to watch with stop loss of approx 205.

Projected yield of 8.5+%.

Jefferies International today downgrades its investment rating on Carillion PLC (LON:CLLN) to hold (from buy) and cut its price target to 230p (from 360p).

clln, x-Div 11/5/17

12.65p per share!

Bookies target prices share price 200-300p!

How far will this go , and when will the shorters decide to depart , and is it a buy .

Strangely the shorters never seem to give up. Must be the most heavily and consistently shorted stock. Currently just over 21% declared short interest.

Not a lot, but a starter.

But look at the forecasts, not the charts.



Director Deals - Carillion PLC (CLLN)

BFN

Richard Howson, Executive Director, bought 8,719 shares in the company on the 9th June 2017 at a price of 197.49p. The Director now holds 160,384 shares.

Story provided by StockMarketWire.com
Director deals data provided by www.directorsholdings.com

I'm watching .

an ugly chart and even uglier if you look at the 5-year

Doesn't look too good here now until they maybe complete their review , see where the shorters take it .

Down 37% .

Peel Hunt Reduce 123.75 200.00 200.00 Reiterates

Liberum Capital Under Review 123.75 - - Under Review

Provision £0.85 billion on a £4.5 billion turnover company.

Provision about the same as total of last 5 years profits.

Pension deficit and debt no look a problem to me as confidence lost.

Thought about getting into this one a couple of months ago for the divi but decided it looked too good to be true, the shorters have certainly been vindicated, sorry for holders though.

UBS comment:
"We have long argued that Carillion is running excessive risk with total net debt incl pension of £1.4bn before considering around £0.5bn reverse factoring. While dividend cut and asset sales are the first step, we struggle to see how they will be sufficient in reducing net debt. We therefore believe the immediate reaction to the share price will likely be dramatic, possibly down more than 50%, though we recognise the volatility will be high and with c30% shares on loan some short closing may support."

Carillion 2017 first-half trading update
Strategic review and management changes

H1 revenue expected to be similar to that in 2016 at approximately £2.5bn.
· H1 operating profit lower than expectations primarily due to phasing of Public Private Partnerships (PPP) equity disposals, which are now expected to be in H2.

· Strong work-winning performance, with £2.6bn of new work secured in H1 - £2.1bn in support services.

· Progress made against strategic objectives set at full year results, with cost reduction underway and disposal of 50 per cent of the economic interest in the Group's business in Oman, Carillion Alawi, for an immediate cash consideration of £12.8m.

· Deterioration in cash flows on a select number of construction contracts led the Board to undertake an enhanced review of all of the Group's material contracts, with the support of KPMG and its contracts specialists, as part of the new Group Finance Director's wider balance sheet review.

· This review has resulted in an expected contract provision of £845m at 30 June 2017, of which £375m relates to the UK (majority three PPP projects) and £470m to overseas markets, the majority of which relates to exiting markets in the Middle East and Canada. The associated future net cash outflows in respect of these contracts is £100m-£150m (primarily in 2017 and 2018).

· As a result of the enhanced contracts review and the strategic actions below, reflecting difficult markets and exits from certain territories, Carillion is issuing revised full-year guidance, with revenue now expected to be between £4.8bn and £5.0bn and overall performance expected to be below management's previous expectations.

Actions to reduce net borrowing
· Deterioration in cash flows on construction contracts, combined with a working capital outflow due to a higher than normal number of construction contracts completing and not being replaced by new contract starts, means H1 average net borrowing is now expected to be £695m (Full year: 2016: £586.5m).
· The actions the Board put in place in March 2017 to reduce net borrowing have been accelerated and further actions are being taken to reduce net borrowing including:
· Disposals to exit non-core markets and geographies to raise up to a further £125m1 in the next 12 months.
· Further annual cost savings to be quantified as part of the strategic and operational review.
· Maximising the recovery of receivables.
· 2017 dividends suspended resulting in a cash saving of approximately £80m.

Strategic and operational review
· The Board announces today that it is undertaking a comprehensive review of the business and the capital structure, with all options to optimise value for the benefit of shareholders under consideration. An update on the Board's review of the business and capital structure will be provided at the Group's interim results, in September.

· Significant actions already taken to reposition the business.

· Exit from construction PPP projects.

· Exit from construction markets in Qatar, the Kingdom of Saudi Arabia and Egypt.

· Only undertaking future construction work on a highly selective basis and via lower-risk procurement routes.

[1] Includes £12.8m immediate cash consideration from the sale of Carillion Alawi

Philip Green, Non-Executive Chairman said,
"Despite making progress against the strategic priorities we set out in our 2016 results announcement in March, average net borrowing has increased above the level we expected, which means that we will no longer be able to meet our target of reducing leverage for the full year.

"We have therefore concluded that we must take immediate action to accelerate the reduction in average net borrowing and are announcing a comprehensive programme of measures to address that, aimed at generating significant cashflow in the short-term.

"In addition, we are also announcing that we are undertaking a thorough review of the business and the capital structure, and the options available to optimise value for the benefit of shareholders. We will update the market on the progress of the review at our interim results in September.

"Richard Howson has stepped down as Group Chief Executive and from the Board with immediate effect and Keith Cochrane, previously our Senior Independent Non-Executive Director, will take over as interim Group Chief Executive, while a search is underway for a new Group Chief Executive. We are fortunate to have had Keith as a Non-Executive member of our Board as he has considerable plc CEO experience. Richard will stay with the Group for up to one year to support the transition."

Carillion's chief executive has resigned as the construction support services company suspended its 2017 dividend and promised to carry out a strategic review as it warned profits would be lower and debt higher than expected.

Due to cash flows dwindling as construction contracts dry up, first-half average net borrowing at the FTSE 250 company is now expected to be more than £100m higher than last year at £695m, with the board now forced to accelerate the restructuring of the business to slash costs and preserve cash.

Suspending the dividend will save around £80m, with around a further £125m will raised by selling off businesses in non-core markets and geographies over the next 12 months, while further cost savings will be sought as part of the strategic and operational review.

As full year guidance for revenue was cut to £4.8-£5bn and overall performance now expected to be below management's previous expectations, CEO Richard Howson has stepped down with immediate effect and the role filled on an interim basis by non-executive director Keith Cochrane, ex boss of Weir, amid the hunt for a permanent replacement. The managing director of the UK building unit has also walks, along with finance chiefs of three other business units.

In March when the company announced its annual results, chairman Philip Green had said Carillion was accelerating the rebalancing of the business "into markets and sectors where we can win high-quality contracts and achieve our targets for margin and cash flows, while actively managing the positions we have in challenging markets" and would "begin reducing average net borrowing by stepping up our ongoing cost reduction programmes and our focus on managing working capital".

On Monday he said that despite making progress against the priorities set out in March, average net borrowing had increased above the level expected, meaning it will not be able to reduce leverage for the full year.

"We have therefore concluded that we must take immediate action to accelerate the reduction in average net borrowing and are announcing a comprehensive programme of measures to address that, aimed at generating significant cashflow in the short-term," Green said. "In addition, we are also announcing that we are undertaking a thorough review of the business and the capital structure, and the options available to optimise value for the benefit of shareholders. We will update the market on the progress of the review at our interim results in September."

The origin of the profit warning was blamed on the phasing of public private partnership (PPP) equity disposals, which are now expected to be in the second half, as the board pointed to strong contract wins elsewhere, with £2.6bn of new work secured in the half.

Although Green's initial review mentioned in March had seen cost cutting begin with the disposal of 50% interest in business in Oman for £12.8m cash, the deterioration in cash flows on several construction contracts called for an 'enhanced review' of all material contracts by new finance director Zafar Khan that has led the board to decide to exit UK construction PPP projects and exit from construction markets in Qatar, Saudi Arabia and Egypt and only undertake future construction work "on a highly selective basis and via lower-risk procurement".

Khan's review threw up a huge £845m contract provision as of 30 June 2017, of which £375m relates mostly to three UK PPP projects and £470m to overseas markets, the majority of which relates to exiting markets in the Middle East and Canada.

Having previously expected a cash receipt of £730m from these contracts, now a future net cash outflows of £100-150m is predicted, primarily in 2017 and 2018.
Shares in Carillion fell around 38% initially on Monday to below 120p - a level last seen almost 13 years ago.

Broker N+1Singer's Jamie Constable, who pointed out that the company also has a £587m pension deficit, said: "In conclusion it’s hard to see how they can get away without a rescue rights to rebuild the balance sheet. The problems appear to be endemic in the business so culture needs to change too.

"Keith Cochrane was only appointed interim CEO yesterday so could there be more to come out in due course? I have yet to find a number for the gross debt either. At 133p the equity market cap is £575m illustrating the depth of the hole they are in."

Analyst Nicholas Hyett at Hargreaves Lansdown said Carillion "looks like it’s trying to bail out a supertanker with a soup spoon" as debt continues to climb at an increasing rate, while the construction business seems to be hitting one hurdle after another.
"Judging by this announcement, the board are prepared to do everything it takes in order to save the ship. But talk of a review of capital structure, and the ongoing debt problem, will leave investors worried that a significant rights issue could be on the horizon."

Took a punt @100.70p

why?
At this prices and considering the order book is £5 Billions is worth a punt market cap is 1/10 at £530M, high debt and problems ahead short term.
A very low PE 3.9 with fcast of 25.6p for 2017. Bids for the company at this prices is a real possibility. The stock is well shorted so on closing will bounce strongly

Beaufort Securities today downgrades its investment rating on Carillion PLC (LON:CLLN) to hold (from buy).

Peel Hunt today reaffirms its reduce investment rating on Carillion PLC (LON:CLLN) and cut its price target to 100p (from 200p).

Morgan Stanley today reaffirms its equal weight investment rating on Carillion PLC (LON:CLLN) and set its price target at 260p.

Worth a punt at these 99p prices.

If they launch a rights issue then it will have to be someway below this level and dilution could be significant imo, but good luck to those brave/foolhardy enough to buy in now.

Before the news I had penciled in 160p as my entry point.

Now I don't have one.

£4.6b debt (not sure if that includes the £0.4m reverse factoring). Large pension deficit.

Restructuring proposal to look more towards UK market is not going to be cash generative in short term as anything which shrinks company will adversely affect cashflow.

Withdrawal from other markets unless by sale is going to cost redundancies etc.

I haven't been close to to industry for over 10 years CLLN were always known for taking on work at prices way below anyone else. Where everyone else would walk away as the Clients budget was insufficient CLLN would always pick up the work. Their treatment of the supply chain and payment was always terrible.

Finally I understand the hours they expect their finance staff to work and the way they treat them is not good at all.

Any rights issue is probably going to be at 75p or less.

You have to wonder if Morgan Stanley actually saw the resultant RNS yesterday , £2.60p heaven forbid .

@ 95p

Are all the negatives out, or there are more to come?

Carillion's two-day slide wipes out half co's value

LONDON, July 11 (Reuters) - Shares of UK construction services firm Carillion slumped again on Tuesday with a profit warning, suspension of dividends and a CEO departure now wiping out half the company's value in two sessions.

A build-up in accounts receivable - or money owed to the company by clients - along with a burgeoning pension deficit and a bloated balance sheet have soured sentiment on Carillion and made it one of the UK's most heavily shorted stocks.

Stifel, one of the last remaining brokers with a "buy" rating on the stock cut its rating to "hold" warning, however, that its rating "requires belief that assets and liabilities are now fairly stated".

A stretched balance sheet suggests any capital shortfall will likely be met by a dilutive equity capital raise.

Well if I know anything about construction, given that they have already provisioned for getting on for 20% of this years turnover, there are going to be more issues on legacy contracts where the realistic value achievable is lower than that held in the books.

Price now 94p as I write. Looks like some want out at any price

Great buy at 100.70 then

Relentless in it's descent.

I think right issues at 50p may be on the cards and it may drive sp down.

Isn't this overdone... or is there something smelly about? Only a few days ago this was nearly £2.50 . . . has the Div been axed, perhaps....? (( EDIT:_ YES-Tuesday ))
This was always too expensive for me, but maybe soon will be the time . . . 76p now.
EDIT (13July2017)-Thursday - Wow and I thought it might have stabalised... Yet today 54p. Of course if there is to be a Rights-Issue/Placing then the Bears will want it at a low-enough price to make a Profit quickly, so maybe 40p . . . and that prospect is bound to let some investors to Sell, until the Co tells us something . . . . what I still don't understand is how Management thought ( whatever spooked this Market), could be contained?
I may buy a few if 50p.
EDIT (14July2017)-Friday- 57p I paid 68p inc all charges - (only a few). . . . I read in IC that the new Ch Exec has been on their Board for some years . . . So, how is this a fix?....... Wasn't HE part of the problem?
Of course it would be DIFFICULT to find a new Captain for a sinking ship.... However, there are plenty of Old-Dogs in Retirement.... one might just look at the best course of action to avoid the rocks...
EDIT (17July2017)- No-one here noticed Today, HS2 is being pushed CLLN's way.... Friends, Hi-Places, Eh?

what looks cheap today may be even cheaper tomorrow i'm sorry to say to those who hold

"has the Div been axed" - perhaps you should read the Trading Statement.

It isn't overdone if CLLN can no longer service the debt as it isn't making profits to do so.

My guess is that a rights issue will no longer be enough and we are now looking at the debt holders having to accept a partial equity swap.

CLLN's biggest problem over the next few weeks I suspect may be the reverse factoring which means the supplier doesn't have to worry about getting paid in exchange for a discount on the invoice value as the intermediary bank pays it. If the banks become reluctant to continue with reverse factoring, CLLN may find it's subcontractors not willing to work for it and then it's a pile of cards waiting to collapse.

The provision is £850m, more than all the profits it's made in the last 5 years or put another way, they've booked 2 months income in advance of doing the work on every single contract in the business, or overstated the income by 2 months if you prefer or any combination of the two.

That's not a couple of contracts gone bad - that's complete mis-statement of the accounts in my view. A complete mess

Embattled construction and support group Carillion plummeted lower for a second day on Tuesday, as analysts picked apart the company's horrendous trading update at the start of the week.

After losing more than a third of their value on Monday, shares in the FTSE 250 company fell another 15% on Tuesday morning to reach levels not seen since late October 2000, before taking a further leg lower below 90p to make it a 55% fall in two days.

Interim chief executive Keith Cochrane will now start a strategic and balance sheet review which will be presented with interim results in September, with no options ruled out.

Analysts at UBS, which maintained its 'sell' rating on the shares, said the main question now was how can the company recapitalise itself, being "in a tough position" with leverage of around £1.45bn being more than six times estimated adjusted operating profits of £227m for the full year, even before taking account of £420m of average reverse-factoring.

With Carillion reassuring about its debt covenants UBS saw "no immediate liquidity issues" but said the strategic and balance sheet review could include the raising of fresh equity, a debt-to-equity swap, asset disposals or a combination of all three, though disposals may hit earnings.

"The potential outcome for current shareholders remains highly uncertain at this stage," the Swiss bank said, giving a sum-of-the-parts estimate of the shares of 78p.
Morgan Stanley said "further write-downs are possible" as the contract review continues under a new CEO.

And while agreeing that there is limited covenant risk, "sustainable leverage levels are unclear and are likely to remain so until the capital structure review in September".
"The objective to delever is paramount, in our view, but there is a question over whether this can be achieved organically, as working capital outflows are likely as the construction business unwinds and we see limited trophy assets that can realise value," analysts wrote.

Broker Numis cut its PBT forecasts by 25% for the current year and now assumes a flat PBT profile for next year, with zero dividend in both years.

Numis sees further contract issues emerging from the review, given that the KPMG review was some 58 contracts in 'enhanced review', which account for some 73% of total receivables.

Taking a technical view, analyst Mike van Dulken at Accendo Market said investors -- both those nursing losses and those circling for a bargain -- were asking where the shares would find the next levels of support, having on Tuesday breached levels from the fourth quarter of 2002. Van Dulken saw no technical support until the 83p from autumn 2000 and then 81.5p all-time lows from March that year. "This doesn’t sound far away, but the lowest of the two represents another 17-18% fall from here," he said, noting that it was "still early days" in terms of the announced capital structure review. "This could easily comprise a highly dilutive rights issue to reduce debt and shore up the balance sheet. Hedge funds have already done well by shorting the stock in anticipation of corporate troubles. However, they may decide to stay the course seeing these financial woes (financial stress, profits warning, dividend suspension, CEO departure) having legs, and expecting the above-mentioned remedial work to take the shares even lower."

58 contracts = 73% of receivables ????

Carillion tumbles to fresh record low as pressure piles on

Carillion shares plunged for the second day running as the City calculated that it would need to raise more than its market value in new shares to fix its "mess" of a balance sheet. The troubled construction and facilities management company has lost most of its value in two days of trading after a succession of botched projects forced it to take £845m of writedowns on Monday.

Something very wrong here , a few months ago i highlighted a 500,000. buy at about 220p OT trade that's over a million squid , they must have had some advice to buy at that spend , wonder if they got out .

60p now... This truly look nasty.

would be brave to short at this juncture other than with a guaranteed stop loss, if such a thing would even be on offer

Cynic, you said 'what looks cheap today may be even cheaper tomorrow'.

Declared short interest is still 24%. I wonder at what point they will take their money & run?

Watching this with interest. No position and feeling sorry for those long.

I think it's done for. The share price is now too low for a rights issue so it's down to a debt for equity sway but the trouble with that is I suspect it will still require an injection of cash due to loss of confidence and who's going to do that with the current level of uncertainty.

The banks don't need to keep it afloat now their balance sheets are mostly repaired and I think they will let it go bust.

In auction again now and getting close to 50p. I can't imagine what stops will trigger there.

Reversal today against all odds.

I like it! (Post 270)
What do they say about pictures and words.

The same could be said in here .............

Best Thread of the week - Tradefr - Today 12:02
says
Best thread so far, from BTFATH1

"Finally Today 11:26 So many little s**** on here predicting doom and gloom and panicking holders into selling their family fortunes for their own gain. F****** shameful this is hugely undervalued it is a punt for me but some have their lost their shirt. Stick to the facts

Continuous profits, 44 billion of contracts 49,000 employees over a hundred companies across the world that could bid. Funding secured till the end of 2018"

Good luck you fooking shorters I despise you!!!!!

I've lost a fair amount but I'm back in @63

RBC comment today:
"New forecasts: In reality, these are largely irrelevant given the high degree of uncertainty on the future strategic direction of the group and ongoing risks. However, these do provide a base to drive our rights issue analysis. At the headline level, we cut FY17E PBT by 20% to £144.7m and EPS by a similar level to 27.5p. For FY18E, we have cut PBT by 16% to £147.2m and EPS by 17% to 27.9p. We have not assumed any resumption in the payment of a dividend over our forecast horizon. Adjusted spot net debt increases by c£290m to £487.8m in FY18E.
In our view, a rights issue is the most obvious course of action. We believe that £600m could be required and assuming a 40% discount to the current share price, would imply an EPS base of 9.2p (67% dilution to new forecasts). This would take average net debt to EBITDA down to 1.2x, a more sensible level of near-term leverage. We would also not rule out the disposal of its Construction operations - given these are the main source of risk and working capital volatility in the group. A focused Support Services business could be more palatable from a turnaround perspective and future valuation.
It is difficult to take a firm stance on valuation, given the high degree of probability in a change to its capital structure. However, on current forecasts, our sum-of-the-parts based valuation indicates a fair value of 100p. If we were to consider c10p as a sensible earnings base post a rights issue, then a 10-12x multiple on this would not be out of kilter with what we have seen at other special situations in the sector."

JP Morgan today:
"We see further risk to the downside, even at the current share price. On reflection, we previously did not adequately appreciate the sharp increase in receivables during 2016 and the high level of receivables vs peers. Our analysis suggests a further provision is possible and that current debt facilities may not be sufficient. We lower our 2017-19 profit forecasts by c.20% and cut our SOTP PT sharply to 64p, from 292p, rolling forward to Dec-18.
While the recent KPMG review of Carillion’s accounting of contracts appears to have been thorough, we note that management used its judgment to determine final provisions. Our analysis (page 2-3) suggests a further (possibly material) provision may be necessary. In addition, we are not convinced Carillion’s current debt facilities will be sufficient to accommodate H2 peak gross debt. We struggle to see an elegant way out for Carillion, with our numbers indicating a possible equity raise of £532m (we consider a rights issue) needed to bring FY18e average ND/EBITDA to 1x. We are also not convinced that Carillion would represent a feasible target for a potential acquirer, given the scale of risk and liabilities.
We overlooked the size of receivables and their rapid growth in H2 2016. We also overlooked the probable drivers behind the rapid growth of the reverse factoring scheme. More generally, we likely should have put more emphasis on the numbers themselves, rather than the circumstances surrounding them.
While we believe further risk is likely to the downside, we are opting for a Neutral in light of material uncertainty on many issues, including future provisions, the decision and ability to raise equity, and the possibility of being acquired."

LedZep4 today:
This is a basket case.
If you have any - SELL
If you don't have any - AVOID

:o)

Bought some @ 57.50p

Appointment of Joint Financial Adviser and Joint Corporate Broker

Carillion plc ("Carillion") announces that HSBC Bank plc ("HSBC") has been appointed Joint Financial Adviser and Joint Corporate Broker, with immediate effect.

StockMarketWire.com
CEK - joint venture partnership consisting of Carillion, Eiffage and Kier - has been successful in its bid for two HS2 contracts worth £1.4bn.

The JV has been awarded lot C2 - North Portal Chiltern Tunnels to Brackley £724m - and lot C3 - Brackley to Long Itchington Wood Green Tunnel South Portal £616m

It said these lots would be awarded in two stages.

It said stage one would be a 16-month period to develop a design, a programme and a target cost for the construction of the works and stage two was the construction of the main works and this was expected to take between four and five years to complete.

Carillion interim chief executive Keith Cochrane said: "We are delighted that our Joint Venture, CEK, has been selected to deliver two of the three Central contracts for HS2 Phase 1, the London to Birmingham section of the route, reflecting the strength of our Joint Venture.

"We look forward to working in close collaboration with HS2 to deliver this iconic project.

"Carillion is a leading supplier of infrastructure services with top two positions in both the UK rail and highways sectors, where we work in partnership with key customers, including Network Rail, Highways England and HS2.

"We expect the UK Government's objective of generating economic growth through investing in infrastructure to continue creating opportunities for us to grow our business in these core markets.

62.75p +6.60 11.71%

this is an important move for the confidence of the city.......

Carillion appoints EY to support its strategic review

Carillion, the integrated support services group, announces that it has appointed the professional services firm, EY, with immediate effect to support its strategic review with a particular focus upon cost reduction and cash collection.

As announced on 10 July, the Carillion Board is undertaking a comprehensive review of the Group's business and capital structure, alongside taking immediate action to generate significant cashflow in the short term and achieve a reduction in average net borrowing.

The Board has identified a number of actions to reduce average net borrowing including further cost efficiencies, an increased focus on managing working capital and on recoveries and cash collection.

Keith Cochrane, Interim Chief Executive, said: "We are moving forward quickly with the actions outlined last week. Alongside our own efforts, EY will provide support across the business and bring an external perspective to our cost reduction and cash collection challenge. My priorities are to reduce the Group's net debt and create a balance sheet that will support Carillion going forward.

"We need to simplify the business and demonstrate that value can again be created for shareholders by focusing the Group on its core markets, including infrastructure and property services, in which it has good strengths and leading positions"

Carillion JV awarded two further HESTIA contracts

Carillion Joint Venture awarded two further HESTIA contracts by Defence Infrastructure Organisation (DIO), with a core value of £158m excluding retail sales



Carillion, the integrated support services company, is pleased to announce that its Joint Venture has been awarded the HESTIA North, and Scotland and Northern Ireland Soft Facilities Management Multi Activity Contracts. These latest contracts follow on from the award of the South East and London contract by DIO to the Joint Venture earlier this year. The two new contracts have a core revenue value of £158 million over the initial contract period of five years, but with the opportunity to double that figure in the same period through catering and retail sales.

The Carillion Joint Venture will deliver soft facilities management services, including catering, retail and leisure, together with hotel and mess services. The North contract will employ around 1500 people, covering 130 military establishments and will go live at the beginning of January 2018. The Scotland and Northern Ireland Region contract will go live at the beginning of November 2017 and covers a further 103 military establishments and will employ around 1030 people.

Carillion Interim Chief Executive, Keith Cochrane, said: "We are delighted to be awarded these contracts. The DIO is a key support services customer with whom we have built a long-term successful partnership. We are committed to building on this relationship and on our position as a leading supplier to the DIO by using our core skills and capabilities to deliver high-quality services.

"These contracts play a critical role in supporting our armed forces and they have a number of unique aspects that require a specific, regional focus. They will enable us to create further training and employment opportunities for ex-services personnel in support of our commitment to the Armed Forces Corporate Covenant".

74.15p +7.25 (+10.84%)

Another day another bounce, as good RNS are reported, Some Institutions were loading at those low prices..............

17-Jul-17 15:52 RNS Holding(s) in Company.........from 6.50% to 7.09%

Citigroup Global Markets Limited
Resulting situation on the date on which threshold was crossed or reached
7.0979% - 430,254,629 shares

Position of previous notification 6.5078%

Yeah the same silly buggers who bought 13 times more at probably quadruple the price.

Yeah, yeah, yeah

note:
The same old sheep standing on 3 legs now

You the fund manager ?

Retracement Levels - high/low - 75.68 / 49.90p

50.0%
62.79

61.8%
59.75p

78.2%
55.41p

I wonder if this is a re-run of Marconi...? However, in that instance the ( Memory serves?), they had made bad judgement for several years and their Market was in collapse ( Telco-Dot-Com ), so the World was getting out, whatever companies said.
Here CLLN is different...sure the same bad processes by Management.... but their Market is buoyant, with new Contracts and the ability of UK-Government to spend money like they have a "Money-Tree" for infrastructure.
Of course, I don't know if CLLN is close to UK-Gov but one might suspect that most large employers can exert pressure . . . so, what CLLN needs is at least one contract where they can make money . . . and I suspect the current bunch of Execs need to be ditched; bring in "Builders that know".
The Institutions could do worse than asking Peachey ( from Berkley Homes) - in an hour ...he'd tell 'em how it is...
I'll admit I hold from marginally higher and fear Debt-for-Equity . . . Now seeing further falls....
I'm reading the latest Annual Report and everything appears perfectly OK..... Most ODD that.

I imagine the vultures are circling.

I haven't seen Freda on here since he was bragging about the divi and potential of this company , bet he says he sold beforehand .

I don't think Fred would do that VIC, whilst his views are different I believe him to be honest.

Vicky darling,

Are you attempting to crow again.

In spite of Clln, it hasn't been a bad week.

Thought that might weed him out of his silence , George .

Canaccord comment today:
"Pursuant to Carillion's parlous H1 trading update (£845m contract receivables provision, elevated net debt, dividend suspension, CEO exit, strategic review), we downgrade estimates and reiterate our SELL stance with a revised target price of 20p (from 200p). Notwithstanding a flurry of recent contract awards, which speak loudly to the pedigree and various world-class capabilities and technical competencies which exist within the company, we continue to see material downside in the equity value of the group.
The company is facing a major liquidity crisis which will, in our view, require significant capital restructuring. Successful delivery of the current balance sheet repair initiatives (including augmented recovery of receivables, exit from certain construction markets) may itself be compromised by the perceived funding gap.
An equity based funding solution is likely to prove challenging:
Interests of other stakeholders including banks and pension trustees (net deficit £587m, double the market cap) may impose conditionality.
Lack of permanent CEO turnaround specialist (may not be in situ soon).
Scope for further provisions/write-downs pursuant to EY strategic review (i.e. forecasts not secure and thus scale of funding requirement unclear). A formal update is not scheduled before the interims in (now "late") September.
Given the 80% price destruction over the last two years, current holders may not wish to exercise their pre-emption in which instance the strike price for new shares will be dictated by sub-underwriters and potentially very dilutive. Using a base assumption of a £500m rights issue (2.4x EBITDA, reducing net debt/EBITDA to 1.1x) we model for a spectrum of scenarios from a 7 for 6 at 100p down to a 12 for 1 at 10p, which constitute potential dilution to existing shareholders of between 55% and 93%.
This remains a very binary situation with the equity value highly geared to the quantum of net debt. Should the company over-deliver on the receivables recovery plan within the existing provision alongside its other balance sheet repair measures (by say £100m versus our forecast) then the shares could move back above 100p quite quickly (albeit we are unlikely to gain clarity on progress made before September). Any deterioration versus our admittedly cautious forecast leaves the existing equity value in peril. We expect the next few weeks will see continued price volatility and the net performance outcome could be extreme. Our SELL recommendation and 20p target price (equivalent to a further £200m balance sheet deterioration OR 6 for 1 rights to raise £500m) reflects the balance of risks, as we see them, for equity holders."

I think Canaccord is wrong this time. Carillion is oversold now and with winning 2 out of 3 HS2 contracts and also HESTIA contracts, this is moving up now.

I'll agree with that hlyeo88, - - - although in principal I'm against Government ( =us ), investing in likes of HS2 - the ratio Cost/Reward doesn't stack IMHO.
However, I read there is yet another Cross-rail project.... so less competition for CLLN if they aren't involved.
Debt-for-Equity was mentioned somewhere.... what's yr view? Will the Co need a huge lump of cash.....OR.... will these futuristic contracts be re-written, producing modest returns.
How CLLN, or any construction Co. can commit to a fixed-price contract baffles me.... what if they hit something nasty, like Quicksand/Flood/etc. ? - These should be risks the financiers take - since they are taking the Profits into the future.
Also, they have a major hand in the positioning of the project....whereas the Constructor has to follow Plans. . . . I hold a few.
EDIT(28July2017)- HARRYCAT knows there is no dividend likely for maybe 2-years, but even with a 6-for-1 Rights issue ( if Punters were asked ), the potential income "should" be worthwhile . . . but I have issues with Management that got us into this Mess. They have to go... but who is brainy enough to replace???

Currently 31% dividend yield! I can live with that! \o/

Oh really..and when "was" it due do you know Harry?

Early May and early September.
I'm in denial Stan.....just tell me what I want to hear!

Deutsche Bank and Citigroup are buying into CLLN now.

Short interest at 22.17% which has only dropped 3% percent since the fall after they made the £850m provision. In fact it's starting to rise again.

I'm not sure they are out of the woods yet. It's all about whether sub-contractors will want to work for them. I suggest things are fairly precarious until such time as the level of debt starts falling, which is hard to see unless they can generate any profits which they don't seem very good at.

Still approx 22% short interest. Thought it might benefit from the good results from BBY today, but seems not.

oi mentor , still getting cheaper.

The hook is a bit flatter but...

I have no position in CLLN, too risky for me. The short sellers aren't reducing and the share price continues to fall which tells me things are looking pretty grim.

Looks like 50 is going to go any second now.

oi Dily

have you see me posting here lately
that should tell you something

if not ask the old 3 leg sheep

Yep it tells me you've been clueless on these.

WHY ARE YOU SO OBSESSED WITH 'CLUELESS'?

better than the 3 leg sheep

Lol which one is you ?

A sad demise.

Don't worry mate , mentor will be along soon with another buy recommendation.

That'll really feck up them up.

I wonder when the shorters will close out. They still seem relentlessly determined.

Even the fish in post 301 has lost interest!

Looks like someones dawdling with the rescue package , mind you with the lack of awareness pre results it's not surprising really , can it work at 10p .

Announcement of 2017 interim results

This announcement will be on 29 September 2017.

Can't believe declared short interest is still 23%. Might be a squeeze when results are out on the 29th.

Probably chuck the kitchen sink in with the interims and announce a strategic revue of the strategic revue.

Still sat on the fence waiting for mentor to recommend selling.

The reason for the strong bounce:
http://www.cityam.com/272752/carillion-middle-east-suitor-plots-takeover-attempt-and

someone has to buy some "dill" for the fish sauce

take the heels off, not time to go out for a walkie yet

Didn't I read today a rumour there is/was a Foreign Investor about to pounce? This might give "shorters" a nasty taste..... but theTrading Results will have been concluded a few days/weeks before any recent rumours circulate, so even if it's true... it's unlikely to be mentioned in the Report itself.
Maybe expect a Co. RNS denying . . . . ?

Predictably awful results.

Financial results for the six months ended 30 June 2017
Strategic and operational review update
Carillion plc ("Carillion", the "Group" or the "Company") announces its H1 results and an update on its strategic review.

H1 financial performance weaker
· Total revenue flat at £2.5bn
· Underlying pre-tax profit down 40% due to:
- The phasing of PPP equity disposals; and
- The trading of contracts with H1 provisions at zero margin
· Contracts review finalised:
- No change to previously announced provision of £845m for construction contracts
- Further £200m provision for support services contracts, but minimal impact on cash
· Goodwill impairment charge of £134m in respect of UK and Canadian construction businesses
· Average net debt in H1 £694m
· New H1 orders plus probable orders of £2.6bn, with total orders plus probables stable at £16bn

Strategic review and balance sheet update
· Business refocused on core strengths and markets - support services, infrastructure and building
· New leadership team and operating model - delayered structure, greater accountability and transparency
· Initial cost reduction target of £75m by mid-2019
· Actions underway to improve cash flow and strengthen balance sheet
· Expected proceeds from non-core business disposals increased to £300m from £125m
· Discussions ongoing regarding sales of Carillion's business in Canada and the UK Healthcare business
· Pension deficit reduction of £80m, potential to reduce further by £120m
· Agreed further £140m committed facility with a number of banks
Revised full-year outlook
· Full-year results to be lower than current market expectations
· Total revenue expected to be between £4.6bn and £4.8bn (previously £4.8bn to £5.0bn)
· 2017 H1/H2 profit split similar to recent years, before £10m of cost savings and business disposals
· Full-year average net debt expected to be between £825m and £850m
· Estimated further restructuring costs of £75m to £100m in H2.
Commenting Keith Cochrane, Interim Chief Executive, said:
"This is a disappointing set of results which reflects the issues we flagged in July and the additional £200m provision for our Support Services business that we have announced today. We now expect results for the full year to be lower than current market expectations.

"The Strategic Review that we launched in July has enabled us to get a firm handle on the Group's problems and we have implemented a clear plan to address them. Our objective is to be a lower risk, lower cost, higher quality business generating sustainable cash backed earnings. In the immediate short term, our focus is to complete the disposal programme, accelerate our action to take cost out of the business and get our balance sheet back to a place where it can support Carillion going forward.

"No one is in any doubt of the challenge that lies ahead. We have made an encouraging start and the ambition is there to build on that progress. At the heart of this company, there is a strong core. Supported by an operating model that manages risk much more effectively and led by a fresh management team with a mandate to drive cultural change, I am confident that a strong business can emerge."

Is the clever coaks reporter ( Oliver Gill - middle-east-suitor-plots-takeover-attempt ) another fools report in order for some to get out late yesterday ahead of today's yet again of another profit warning ?

It sound like this so far ( paid for it ),
I am glad not in anymore and only for the - cat bounce earlier -

i do not hold either, but of course any predator might be very happy to wait until the crap results were published thus making a low bid more attractive


btw, TCM had a very odd rns yesterday, and though again this is not one i hold, i'ld have thought short was a much better bet than long

Peel Hunt today reaffirms its reduce investment rating on Carillion PLC (LON:CLLN) and cut its price target to 40p (from 50p).

StockMarketWire.com
Carillion has agreed new facilities and deferrals which had improved group committed headroom throughout 2018 by between approximately £170m and £190m.

The group said it continued to assess a broad range of options for optimising its capital structure and to this end is fully engaged in constructive dialogue with stakeholders.

An update said: 'Carillion announced on 29 September 2017 that a term sheet for further committed credit facilities of £140m had been agreed with five of the Group's core lenders.

'Further to this, the Group is pleased to announce the signing of two committed facilities, totalling £140 million, as contemplated by this term sheet.

'This additional liquidity is fully available to draw down now.

'It comprises a £40m senior secured revolving facility maturing on 27 April 2018, secured over shares in certain of the Group's subsidiaries and over certain of the Group's assets, and a £100m senior unsecured revolving facility maturing on 1 January 2019.

'In addition, the Group has agreed new committed bonding facilities, together with the deferral of certain pension contributions and the deferral of repayment of private placement notes due in November 2017 and September 2018.

'These deferrals will be until the earlier of five business days following, (i) the repayment of the new committed facilities, and (ii) 1 January 2019.'

Carillion also said it had signed heads of terms with Serco Group Plc for the disposal of a large part of its UK healthcare facilities management business for an agreed price of £50.1m, subject to a limited working capital adjustment.

Carillion said it had agreed to give Serco a period of exclusivity to provide the parties with time to finalise a business purchase agreement, which Carillion and Serco are aiming to sign in the next few weeks.

It said: 'The transfers of contracts pursuant to this disposal are each subject to receipt of third party consents, and, if required, shareholder approval.

'It is intended for the contract transfers to take place on a phased basis, with the aim of receiving the bulk of the proceeds during the first half of 2018. Further details will be published once the business purchase agreement is signed.'

Carillion said it intended to dispose of the remaining contracts in its UK healthcare facilities management portfolio during 2018.

The uodate added: 'While Carillion is continuing to pursue the disposal of the Group's Canadian businesses, it is also evaluating whether a better result for the Group would be achieved by retaining for now certain of those businesses.

'The Group continues to target non-core disposals with aggregate consideration anticipated of over £300m by the end of 2018 and further announcements will be made in due course.'

It said that recent wins included:

- Gigaclear - £200m contract. Carillion telent, a 60:40 Joint venture with telent, has signed a contract with Gigaclear, the ultrafast pure fibre broadband company, to build a broadband network in Devon and Somerset. The contract is expected to generate revenue of up to £200m for the Joint Venture between 2018 and 2020, and will commence immediately.

- Dubai Creek Harbour - £105m contract. Following a pre-construction period, Emaar Properties has awarded Al Futtaim Carillion (AFC: a 50:50 Joint Venture) the contract to deliver Creek Horizon, a collection of premium residential apartments located at the Island District in Dubai Creek Harbour. The contract is expected to generate revenues of approximately £105m for AFC and work is underway, with completion scheduled for early 2020.

- Fallowfield - £71m contract. Following Carillion's appointment as preferred bidder (announced on 12 April), Carillion has signed a contract with the University of Manchester to design and build Phase 1 of its Fallowfield Student Residences project. The project has an estimated construction cost of £71m and work is underway.

The group said there was no change to 2017 guidance as set out in the interim results announcement on 29 Sep.

Interim chief executive Keith Cochrane said: 'Today we are announcing progress on a number of fronts and whilst our customers and creditors continue to be supportive, much remains to be done.

'We remain focused on executing our disposals and cost savings programmes while continuing our discussions with our lenders and other stakeholders to explore further ways of strengthening Carillion's balance sheet.'

UBS still don't seem very impressed:
Carillion announced it has signed heads of terms for the sales of parts of its UK Healthcare facilities management business to Serco for £50.1m. The two parties will now finalise a business purchase agreement and transfer the relevant contracts in a phased manner. Carillion expects most of the cash proceeds to be received in H118. The business generated £90m of annual sales. Assuming approximately 5.5-6% average support services margins implies EBITA of £5-5.5m so an implied multiple of 9- 10x EV/EBITA, broadly in line with our overall valuation of the support services business in our SOP.
The previously announced additional £140m of facilities have now been signed. In addition, the group has agreed deferral of £16m of private placement payment due in November 2017 and the option to defer £49m of PP's maturing in September 2018 until January 2019. The group is also deferring cash contributions into the pension scheme of around £24m, which would have been due between August 2017 and March 2018. The outcome of the triennial valuation remains due which could re-calibrate pension payments going forward. The cost of these new facilities / deferrals is between LIBOR + 8% and LIBOR + 12% so is relatively high.
As part of the £300m disposal target, the largest part was expected to come from the disposal of the Canadian services business. It is now communicating it may retain elements of this business, suggesting forthcoming bids for the entire operation either do not exist or valuation is below expectations.
Valuation: Sell, 1p price target
Our PT is based on SOP. While facility extension and other liquidity measures provide breathing space, they do not fundamentally solve Carillion's debt problems. The disposal programme has got some traction although it appears buyers are cherry picking assets which raises a question of the quality of the remaining business. We ultimately expect significant dilution to existing shareholders and see no material equity value left for current shareholders.

Thanks

1p price target!

I'm wondering why pension trustees would agree to deferral of payments. Even if the tax situation on the pension has gone CLLN's way, I'm not sure even then why a trustee would agree to no payments given the perilous state of the company.

Libor +8/10%. Just can't see how anything other happens than the banks bleed them to death.

http://www.cityam.com/274666/carillion-locked-gbp200m-row-over-contract-prepare-qatar

StockMarketWire.com
Carillion has sold its 66.67% shareholding in Ask Real Estate and a shareholder loan made by Carillion Construction to AREL's subsidiary, Ask Central Limited and its 50% interest in Ask Carillion Developments to one or more wholly-owned subsidiaries of Dukehill fpr £13.8m.

It said £1m of the cash consideration was contingent on the sale of 100 Embankment and would be paid by Dukehill within five business days of signing of the sale documentation in relation to this.

AREL and ACD (through their wholly-owned subsidiaries and other associated entities) carry out commercial property development activities, together with various partners, in the North of the UK, including Manchester, Liverpool and Leeds.

Carillion interim chief executive Keith Cochrane said: 'We are pleased to be able to announce further progress.

'Much remains to be done, and we are continuing to execute our plans to refocus the business, reduce cost and strengthen our balance sheet.'

StockMarketWire.com
Carillion has won two contract awards for Network Rail's Midland Mainline improvement programme.

Carillion has signed a contract with Network Rail to upgrade the existing track and infrastructure on the route from London to Corby.

The contract is expected to generate revenues for the Group of £62m over the next two and a half years.

And Carillion Powerlines, a 50:50 joint venture with Powerlines Group, has signed a contract with Network Rail in respect of the Midland Mainline Electrification programme.

Under the contract, Carillion Powerlines will undertake work to complete the electrification of the route from London to Corby.

The contract is expected to generate revenue for the JV of c£260m over the next three years and work will commence shortly.

"generate revenue" is a far call from "generate profit"
no wonder the market is unimpressed

StockMarketWire.com
Carillion Alawi - Carillion's 50:50 joint venture with the Zawawi family - has signed a letter of award with the Oman ministry of health as the preferred bidder in respect of the design and build of the New Sultan Qaboos Hospital in Salalah.

The contract - which has an estimated value of c£240 million to the JV - will consist of a two-stage design and build process.

The initial design and mobilisation phase, which will be directly funded by the customer, will commence immediately.

The second phase would commence in 2018 once the design has been completed, the contract executed and funding finalised.

A further letter of award is due to be signed shortly by Carillion Alawi, also with the Oman ministry of health, in respect of a hospital in Khasab.

The contract is on similar terms to those for the Salalah award and, if it were to go ahead, would have an estimated value of c£120m to the JV.

StockMarketWire.com
Carillion intends to seek to defer the testing of its financial covenants and warned that full-year profits would be materially lower than current market expectations.

The group said that since July it had been focused on reducing costs, collecting cash, executing its disposals programme and implementing its new operating model.

It said these self-help measures would serve to reduce the group's average net debt over time, but they would not be sufficient to enable it to achieve its target net debt to EBITDA ratio of between 1.0 to 1.5 times by the end of 2018.

Carillion said the board was in discussions with stakeholders regarding a broad range of options to further reduce net debt and repair and strengthen the group's balance sheet.

It said this would require some form of recapitalisation, which could involve a restructuring of the balance sheet.

It said the board expected to start steps to implement the chosen option during the first quarter of 2018.

Carillion said that based on its latest forecasts, the board now expected a covenant breach as at 31 Dec.

It said: 'Following discussions with its principal lenders and with their support, the board has concluded that it is necessary to amend the relevant agreements to defer the test date for both its financial covenants from 31 Dec 17 to 30 Apr 2018 (based on EBITDA for the 12 months to that date), by which time it expects to be implementing its recapitalisation plan.'

Carillion said it had now commenced a process to seek the consents necessary to make this amendment.

The group also said that a combination of delays to certain PPP disposals, a slippage in the commencement date of a significant project in the Middle East and lower than expected margin improvements across a small number of UK Support Services contracts, partially offset by cost savings initiatives realised in the fourth quarter, would lead to profits for the year to 31 Dec being materially lower than current market expectations.

Given the impact of delays in receipts and disposals, the group now expects full year average net borrowing in 2017 to be between £875m and £925m.

Interim chief executive Keith Cochrane said: 'Whilst we continue to target cash collections, reduce costs, execute disposals and focus on delivering for our customers, it is clear that significant challenges remain and more needs to be done to reduce net debt and rebuild the balance sheet.

'Constructive dialogue is continuing with our financial stakeholders, and I am grateful for their support.

'I remain focused on addressing this issue before my successor, Andrew Davies, takes up the role on 2 April 2018.'

Liberum Capital today reaffirms its sell investment rating on Carillion PLC (LON:CLLN) and set its price target at 5p.

my comment on #329 was clearly not so dumb

It's done for imho. They need to get the debt for equity swap done as every day this drags on the supply chain will be trying to claw in money owed to them and minimise any credit given.

and still possible to short, though that's always a bit scary .... perhaps to do with a guaranteed stop

Apparently not cynic. I've been watching it all day and it's beginning to look really weak into the last hour and there's a 25k sell bot running at 26.25 plus there were some 250k sells went through a little higher about half an hour ago, plus someone has loaded a 500k buy at 25.0 which I reckon is fake.

Tried to short it with intention of closing today regardless of success or failure and my broker has disabled all shorting on it even at 100% margin.

edit: and the sell bot has already moved down a quarter of a point to 26. It's getting multiple fills. Reckon it's shifted a million already.

it looks that i can short with IG CFD's with 25% margin

looks that i missed the boat anyway ..... dithered with the thought this morning when sp wasrecovering to about 28, then went to the gym and when i came back, our whole IT system was down for about 2 hours .... never mind

===============

just noted that i managed to sell 750 at 24.75 ...... that'll never buy me a yacht :-)
filled balance at about 23.25 ..... it's not an aggressive position, but it may rake in a few shekels

looks to have been an ok move, and position already in the money
sod's law says that on monday morning it'll open at 30 ...... no i don't believe that either :-)

StockMarketWire.com
Carillion has been awarded two lots on the Education & Skills Funding Agency's school building framework.

Carillion said the new framework was for a period of four years and replaced the existing ESFA Contractors Framework, on which it was also a provider.

Carillion said it had been appointed on both lots it bid, covering the north and south of England, for high value projects.

It said these were anticipated to be worth c£2.64bn in total over the period to 2021, with the group one of nine contractors selected on these lots.

so it's been allowed to bid for a portion which it may or my not get .... and how much profit might accrue?

glug glug glug ..... what a shame :-)

Unfortunate for most holders, but that yield (10% ish) back along was a warning sign.

it's been on the cards for several months so holders should not be surprised

The government has come under fire after Carillion continued to win new contracts, despite Whitehall rules designed to limit taxpayer exposure to "financially distressed" companies. Cabinet Office policy states that departments and agencies should reduce "where possible" the additional work given to "strategic suppliers" designated "high-risk" under existing contracts to "contain the risk to the taxpayer".

Stan, thanks for the background info - AFIK the work that CLLN workers provide is OK... I don't recognise "several botched jobs" - so there is "probably" no reason to exclude CLLN from any BID-process.... Esp. if they are traditionally a low-bid provider. Where Management has failed is to know how low they can go, while still making the Client happy ( as well as shareholders).
I'm really not sure about this one....but suspect my 68p purchases a while-back was foolhardy . . . it's easy to look at recent highs and believe they are the "right-price" - clearly they weren't and maybe the yield was false, if the Co. as racking up debts.
Just how low can this go depends on the timescale and profits within New projects working through.
Just because they are included in a Construction scheme, may not mean they'll get the business . . . rather they are allowed to bid to lower the "Bid-average" -yet someone will win the business and if CLLN can do a good job.... why not?

because CLLN do not seem to recognise the difference between profit and turnover
also see #311

I don't know if it's still the case but in the past co's would win the business and then subcontract some of the work to other firms for less than they received for the business in the first place, the subcontractors would then do the same, but ultimate responsibility remained with the original 'winners' of the business.

Can't argue with that...it's pretty common in the construction business. If you have a house extension, the Builder may not have their own plant, so they contract-out the foundations and steelwork. Some smaller works may mean the local builder has to employ a plasterer for a day and electrician also.... I'm just not sure how this affects CLLN and their sp. The big issue is whether they can become profitable before the creditors agree to lose their money, by closing the show. Since [CLLN] hasn't been involved (DYOR) in any scandal like their building falling down, one might suspect the issue is Management having their eyes on Bonus, rather than LT profits.
Almost anyone can get a job if it's "under-priced" - since the Client is getting the work for free.... Some contracts are won on the assumption there will be "Changes" - the contract can be "Upped" - as the specification is altered. Rather like buying the base-model of a car...Dealer weeps....Buy his accessories like mats and wipers (Eh?) and he laughs as these are Marked-up £ots . . . seems no Buyer knows they can go to Halfords.
Ho-Hum.
EDIT-23Nov2017)- Sold out...Can't stand more!
EDIT-13Dec2017)- sp=16p, up today = selling HealthCare division for £40m.

still slowly sinking into the quicksand :-)

StockMarketWire.com
Carillion has appointed Justin Read as a non-executive director.

He has also been appointed as chairman designate of the audit committee and he will assume that post following the preliminary announcement of the group's 2017 results.

He will takeover the role from Andrew Dougal who will retire from the board having served as a non-executive director since October 2011. Read will also serve as a member on the remuneration, nomination, business integrity and health, safety and sustainability committees.

He was was group finance director of Segro from August 2011 to December 2016. Between 2008 and 2011 he was group finance director at Speedy Hire.

Carillion chairman Philip Green said: 'Andrew Dougal has made a substantial contribution to the group and leaves the board with our grateful thanks and best wishes for the future.

'We are very pleased that Justin Read has joined the board.

'He has substantial operational experience across the finance function of significant and international businesses, having served as a group finance director for over eight years and a proven track record of driving business growth.'

StockMarketWire.com
Carillion has concluded a deal for the sale of its UK healthcare facilities management arm after a entering into a business purchase agreement with Serco.

Carillion said that subject to shareholder approval a portfolio of UK healthcare facilities management contracts and associated ancillary contracts and assets which relate to 15 sites would be transferred to Serco on a phased basis.

Carillion said an agreed proportion of the total consideration of approximately £47.7m would be payable in instalments on the transfer of each FM arrangement to Serco, with the aim of receiving the bulk of the proceeds in the second and third quarters of 2018.

Carillion said that after taking account of fees, costs and taxes, the net disposal proceeds were expected to be £41.4m and, when received, would be applied in prepayment and cancellation of an equivalent amount of the group's £140m committed credit facilities announced on 24 Oct.

The disposal forms part of the group's £300 million non-core disposals target announced as part of its strategic review in order to reduce net debt and refocus the Group on its core strengths and markets Interim chief executive Keith Cochrane said: 'I am pleased we have been able to successfully conclude this transaction which will contribute to our efforts to reduce net debt.'

Chief Executive Appointment





On 27 October 2017, Carillion plc ("Carillion") announced the appointment of Andrew Davies as Chief Executive Officer with effect from 2 April 2018. The Board of Carillion is now pleased to announce that it has been agreed that Mr Davies will assume his appointment at an earlier date, and will become Chief Executive Officer with effect from 22 January 2018, at which point he will also join the Board. Keith Cochrane will step down from his role as Interim Chief Executive Officer, and from the Board, on that date but will remain with Carillion in an advisory capacity for a period thereafter in order to ensure an orderly transition.

Andrew Davies was appointed to the role of Chief Executive of Wates Group Ltd in 2014. Prior to that he held a series of senior roles with BAE Systems plc over a 28 year period. He is currently a Non-Executive Director of Chemring Group PLC and brings executive, strategic, turn around and leadership skills to the Company as well as experience of complex public sector contracting in projects, support services and construction.

Philip Green, Chairman of Carillion, said, "We are very grateful to the Board of Wates Group Ltd, and to James Wates CBE, their Chairman, for their facilitation of Andrew's earlier appointment. It is a demonstration of how the sector is willing to cooperate and collaborate to ensure the long term sustainability of UK industry.

"As I said when we announced his appointment, Andrew has the ideal combination of commerciality, operational expertise and relevant sector experience to build on the conclusions of the strategic review and to lead the on-going transformation of the business, and I look forward to his bringing that experience and expertise to Carillion in the New Year."

There are no disclosures in respect of paragraph 9.6.13 (1) to (6) of the FCA's Listing Rules.

StockMarketWire.com
Carillion is under investigation by the Financial Conduct Authority over the timeliness and content of announcements made between 7 Dec 2016 and 10 Jul 2017.

Carillion said it was cooperating fully with the FCA.

LONDON (Reuters) - Senior British ministers held crisis talks this week to discuss the fate of key infrastructure partner Carillion (CLLN.L), as fears grow at the highest levels of government that the debt-laden group could collapse.

A spokesman for Prime Minister Theresa May said the government was monitoring the situation closely and making contingency plans after the construction and services group asked creditors for more time to tackle its debts.

The 200-year-old group is fighting to survive after costly contract delays and a downturn in new business prompted a string of profit warnings and a first-half loss of more than 1 billion pounds.

Carillion builds hospitals, roads and rail lines and provides services to government departments including justice, health and education. It has debt and liabilities including provisions, pensions and accounts payable of as much as 1.5 billion pounds, according to analysts.

i'm not quite brave enough to go short here - did ok from so doing several months back - but surely debt/equity swap must be a racing certainty

why the hell CLLN was even permitted to quote for most of these projects is totally incomprehensible

Sky reports CLLN got 2 quotes from administrators.

I tried to short this afternoon but left it a bit late only to discover my broker still won't allow shorting. Not confident to try and cover CMC's spread so left it now.

Think it's completely in the knackers yard now. Watching it on L2 for entertainment value

Best time to short is when mentor says buy .... sure fire winner.

Newspaper reports suggest CLLN asked for £300m to keep going. Bankers feel they are too optimistic and it's far more.

I sincerely hope the government do not underwrite this loan and let the company go bust.

Regrettably I live near Wolverhampton where CLLN's head office is and although only 450 people are based there, Wolverhampton has one of the highest unemployment rates in the country, so it will hurt locally.

Nationally the work will still have to be done by someone and Kier or Galliford etc. will do it better..

I used to work in mechanical and electrical contracting and 30 years ago. The company I worked for had a unofficial policy of not working for CLLN because it took forever to get paid and you never got paid a fair amount by the time the quantity surveyor had done their stuff. I still keep in touch and today it's the same.

Occasionally someone would take on some work for CLLN before the directors knew about it. I had the pleasure of trying to extract the money. CLLN were simply the most unreasonable off all the builders by some considerable margin. They were so brazen about it. "Yes, we agree the QS has certified it, yes we agree it's 60 days overdue, but we aren't going to pay it yet and we can't tell you when we will pay it".

I also had the discomfort of meeting two members of the senior finance team socially every week. They didn't know who I worked for but I knew who they were. Not nice people. Not nice at all.

The country is better off without this sort of company who have spent the last 30 years screwing everyone they trade with.

It is interesting to note that Wolverhampton was identified as the fifth worst city on the planet. One wonders how much of that is down to it's biggest employer.

https://www.expressandstar.com/news/2017/04/19/not-again-wolverhampton-named-as-one-of-uks-most-miserable-cities/

Shame as it may be but CLLN has become just one of many 'Zombie' co's that QE and low interest rates supported for far too long.

the gov't - aka us the taxpayer - will not bail out CLLN though it may find a way to fudge round that issue

it is typical of all gov'ts that they have evaded the question as to how and why CLLN was allowed to quote at all on major projects when it was already known to be in deep financial trouble
guideline or stronger said this was forbidden

Where did it all go wrong?

confusing t/o with profit

UK government keeping close eye on services company Carillion - Conservative chairman

I suspect the government were feeding them work to try and let them trade out of it.

It's interesting that RBS and LLOY both had large impairments in Q3 related to one client...

company is totally dead in the water
gov't has failed to answer any question at all as to why CLLN was even allowed to quote when its financial plight was already well known

the company won't be overtly rescued by the gov't (taxpayer) though it will be done circuitously
shareholders will lose all their money

Going into liquidation

Ministers dismissed warnings on failing firm Carillion

CLLN
collapsed in a pile of dust as was inevitable
i haven't caught up with the detail but the gov't (taxpayer) will ensure that the contracts are promptly re-allocated in some way, and this should protect (one hopes) the jobs of all those "coal face" employees

Its gone gone.

that's stating the obvious!
it's been ever shortening odds for at least 2/3/4 months

Who would be likely to benefit from their demise, maybe BBY and COST?

Every construction company out there long term as CLLN have been low-balling prices for 30 years.

Weir, Morgan Sindall, Laing,.....

Re post 374, that’s the oldest trick in the book. Bid low and hope to increase both turnover and profitability via loads of extras (variations to contract).

Posted over the road by melodrama:

Not bad eh?

Bet your bottom dollar they will all end up somewhere else with there "Relevant skills and experience"

A bunch of desparados who will sail into the sunset.

I think they conned the shareholders knowingly , as they were seen as close to Government and Government wanted a successful Company spearheading big projects , they got caught out big time .

I notice a few were involved with the Business Integrity Committee - an oxymoron if ever there was!

I think they've been conning everybody for the last 30 years.

The Alfred McApine merger got them out of a hole

Then they bought Mowlem at what is now agreed too high a price and raped and pillaged that.

Then to keep the ponzi going they even tried to buy Balfour Beatty, except even the lenders weren't stupid enough to go for that one.

After they got so large they couldn't hide the losses by constant expansion the game was always going to be up.

Where were the backhanders going?

Where were the regulators?

derek hatton would assuredly have put a stop to all this very early on

I took that as a tongue in cheek comment from cynic

Perhaps he means Bernard Jenkins skill at moving money!

no, i meant derek hatton the former militant who is now a property developer

I hope he is successful rather than being embittered by his success as some would appear to be.

But Manuel you should know when you have everything there is nothing else to have.

why should i worry if DH makes a mint
it's the irony of his hypocrisy that amuses greatly

i wonder if DH also took professional advice on minimising his tax liabilities
all sorts of interesting schemes on offer apparently

The thing is, what were the non execs doing for their grand a week other than turning up now and again for a decent lunch and to nod through anything the the main board wanted?

From the blurb, they've all been around the block, and half of them are accountant types...how could they not pick up on the waiting disaster?

and one must always ask why the gov't (and i guess the previous one too) turned a blind eye to the sword of damocles overhanging CLLN

Your all missing the bloody obvious ... how the hell did they get their accounts signed off as a going concern ?

First year A level accounting student wouldn't have signed that mess off.

this is far from the first time that dodgy accounts have been signed off by the supposed Big 4

Isn't one of the directors head of the Institute of Chartered Accountants in Scotland ?

Start the investigation with him and his relationship with KPMG I think.

cynic , there are many grey areas where things can be hidden but only for so long and not on this scale.

there are a great many instances where the auditors have failed in their jobs - though still charging massive fees of course
did not the sale of BHS fall into this category, and several banks, the maxwell empire and others?

I see this sort of thing all the time, but with smaller companies. Under quoting to get the business, intending to charge more "one day" when things improve, but of course it never does, because someone else comes along and does the same! Eventually they go out of business.

http://www.constructionenquirer.com/2018/02/20/carillion-directors-contemptuous-of-pension-funding/

Carillion directors ‘contemptuous’ of pension funding.

They need to jail some of these directors

Three contractors are bidding to refurbish the fence at the 10 Downing street. One is from London, another is from Liverpool, and the third is an ex matelot. All three go with a Downing Street official to examine the fence. The London contractor takes out a tape measure and does some measuring, then works some figures with a pencil.
"Well," he says, "I figure the job will run about £900. £400 for materials, £400 for my crew, and £100 profit for me." The Liverpool contractor also does some measuring and figuring, then says, "I can do this job for £700. £300 for materials, £200 for my crew, and £200 profit for me." The ex matelot doesn't measure or figure, but leans over to the Downing Street official and whispers, "£2,900." The official, incredulous, says,
"You didn't even measure like the others! How did you come up with such a high figure?" The ex matelot whispers back, £1000 for me, £1000 for you, and we hire the guy from London to do the job."
"Done!" replies the government official.
And that is what Carillion did!!!!!