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Carillion wins £158 million contracts from UK Ministry of Defence

Staff Writer |
Shares rose in Carillion after the support services company said on Wednesday its joint venture has won two contracts worth £158.0 million from the Defence Infrastructure Organisation, the operating arm of the UK Ministry of Defence.

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Shares in Carillion were up 8.5% to 72.58 pence on Tuesday morning, but remain well down after a profit warning and the departure of its chief executive last week sent shares tumbling from over 190p to all-time lows.

Carillion's joint venture was awarded the Hestia North of England, and Scotland and Northern Ireland soft facilities management multi-activity contracts worth £158.0 million over five years.

The contract award is part of the Defence Infrastructure Organisation's Hestia project which aims to deliver a set of standardised soft facilities management services to defence sites within the UK including catering, retail and leisure, cleaning and waste management.

Carillion said it would also have the opportunity to double the £158.0 million in the same period through retail and catering sales.

These contracts follow on from the award of the South East and London contract by the Defence Infrastructure Organisation to Carillion's joint venture earlier in the year.

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