Carillion venture wins two more soft facilities contracts

The FTSE 250 company said the contracts followed on from the award of the South East and London contract by DIO to the joint venture earlier in the year.

Carillion said the two net contracts had a core revenue of £158m over the initial contract period of five years, with the opportunity to double that figure in the same period through catering and retail sales.

“We are delighted to be awarded these contracts,” said Carillion interim chief executive Keith Cochrane.

“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.”

Carillion said the joint venture would deliver soft facilities management services, including catering, retail and leisure, together with hotel and mess services.

The North contract would employ around 1500 people, covering 130 military establishments and would go live at the beginning of January 2018, while the Scotland and Northern Ireland Region contract would go live at the beginning of November 2017 and cover a further 103 military establishments, employing around 1030 people.

“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,” Cochrane added.

“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.”