Carillion wins new work worth £1bn

It also said it was on track to deliver strong revenue growth this year with operating profit in line with expectations and secured orders along with probable orders are expected to remain strong at around £17bn and its pipeline of contract opportunities is expected to increase to more than £41bn.

In support services, Carillion has been awarded new contracts or is in one-to-one negotiations on contracts with an estimated total value to Carillion of more than £350 million. They include new facilities management contracts or contract extensions in the UK for Direct Line Group, Verizon and Virgin Media.

In Canada, Outland, the business it acquired in May 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.

Carillion Joint Ventures are also in one-to-one negotiations to deliver further support services work for the Defence Infrastructure Organisation and for Openreach to deliver a substantial proportion of its Superfast Extension Programme to extend Superfast Broadband to 95 per cent of the UK by the end of 2017.

In construction, Carillion has secured preferred delivery partner positions and new contracts worth more than £550m including further projects for the Defence Infrastructure Organisation, together with projects for the Paradise Circus Limited Partnership in Birmingham and the Kings Cross Central Limited Partnership in London.

A Carillion joint venture has been selected as the preferred bidder by the National Treasury Management Agency in the Republic of Ireland to deliver Bundle Five of its schools Public Private Partnership programme, which comprises five schools located in counties Meath, Carlow, Wicklow and Wexford.

Carillion chief executive, Richard Howson, said: ''I am pleased to say that the pace of work winning in the second half of the year has continued to pick up, as we expected. Much of the £1 billion of new work announced today reflects our continuing success in winning repeat work for long-term customers, consistent with our selective approach to contracts and margins. We also continue to see some improvements in market conditions, especially in the UK, and following the UK Government's spending review, we expect to see further opportunities for outsourcing and capital projects over the medium term,"

The group has renewed its main revolving bank facility and extended the maturity date by nearly three years, from March 2018 to November 2020. The £790m facility has also attracted reduced pricing across the board, which reflects the strength of the group's credit standing. With total available funding of some £1.4 billion, the group continues to have considerable financial strength to support our strategy for growth.

Carillion, which employs around 46,000, will announce its 2015 preliminary results on March 3.