Construction and infrastructure services group Carillion expects to generate over £400m of revenue from various contracts awarded by the UK’s Network Rail (NR) in the first half of the year.
Network Rail has selected Carillion to work on the Midland Main Line Electrification project, the Northwest Electrification project, and the electrification of the Schotts line in Scotland.
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In September, the UK Department for Transport (DfT) announced its intension to restart electrification work on the TransPennine and Midland Mainline (MML) railway lines.
Both the projects were suspended in June, to review NR’s capital programme for the 2014-2019 funding period (Control Period 5) due to cost overruns on several major projects.
In addition to the infrastructure projects with Network Rail, Carillion has also secured various construction contracts worth £311m in the UK.
These include the recently announced A14 upgrade, which is being delivered by a Carillion joint-venture for Highways England.
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By GlobalDataThe projects in the UK, put together with those in Canada and the Middle East, are expected to yield over £1.7bn to Carillion. Carillion CEO Richard Howson said: "As we expected, the pace of work winning in the second half of the year has started to pick up.
"Since the half year, we have secured contracts, preferred bidder positions and framework agreements that are expected to be worth around £1.7bn.
"With cash flow remaining healthy and these recent contract successes, we remain confident of achieving this year’s targets, including ending the year with strong revenue visibility for 2016."
