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Contract Wins and Joint Ventures

Carillion JV wins defence contracts

18 July 2017 09:29

A Carillion joint venture has been awarded two further HESTIA contracts by Defence Infrastructure Organisation with a core value of £158m excluding retail sales. The integrated support services company said the joint venture had been awarded the HESTIA North, and Scotland and Northern Ireland soft facilities management multi activity contracts.

It said these latest contracts followed on from the award of the South East and London contract by DIO to the joint venture earlier this year.

It said the two new contracts had 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.

Carillion JJV 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".

At 9:29am: (LON:CLLN) Carillion PLC share price was +6.98p at 73.88p

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