Belfast Telegraph

Carillion secures two MoD contracts

Troubled infrastructure giant Carillion has secured another two Government contracts just a day after being named as one of the builders of the controversial HS2 rail line.

Carillion said its joint venture has secured contracts worth £158 million to deliver facilities management services at more than 230 military sites across the north of England, Scotland and Northern Ireland.

The group said it had the potential to double the value of the five-year Ministry of Defence contracts through food and retail sales.

Shares in Carillion rose another 9%, following Monday's 17.5% rebound on news of the HS2 contract and after it announced plans to appoint accountancy giant EY for a review of the business.

But the bounceback has recovered just some of the dramatic collapse in its share price seen last week after a shock profit warning wiped almost £600 million from its stock market value.

Chief executive Richard Howson also stepped down with immediate effect last week as the group said it would need to bolster its balance sheet and was struggling to stay within its borrowing limits.

Its latest contract wins will see it provide catering, retail and leisure services, as well as hotel and mess services.

The north contract will employ around 1,500 staff, covering 130 military sites from next January, while the Scotland and Northern Ireland contract starts from this November across another 103 military sites and will employ around 1,030 people.

Interim boss Keith Cochrane, who has stepped in to replace Mr Howson until a permanent replacement can be found, said: "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."

Weekly Business Digest Newsletter

This week's business news headlines, directly to your inbox every Tuesday.