Carillion secures two contracts with Network Rail

Construction and support group Carillion has announced two contract awards in respect of 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 that is expected to generate revenues of £62m over the next two and a half years for the group.

In addition, 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, where it will undertake work to complete the electrification of the route from London to Corby. It is expected to generate revenue of around £260m over the next three years for the JV.

Interim chief executive Keith Cochrane said: “We are pleased to have agreed these awards with Network Rail, demonstrating that we continue to have the support of key customers and win important new contracts. The group faces significant challenges, but we remain focused on executing our disposals programme, taking cost out and strengthening our balance sheet.”

At 0925 GMT, the shares were up 2.2% to 46.99p.