Carillion shares edge up after its joint venture bags a £200m contract by the MoD

 
Courtney Goldsmith
Follow Courtney
Ministry Of Defence Firepower Demonstration
The support services group is pleased to build on its relationship with the DIO (Source: Getty)

Support services firm Carillion today announced its joint venture has won a contract worth up to £200m awarded by the Defence Infrastructure Organisation (DIO).

The firm has been awarded one of seven Hestia contracts to build soft facilities management services, including catering, retail and leisure and hotel and mess services for 87 defence sites across the south east and greater London region, which will employ over 1,800 people.

Shares in the FTSE 250 company edged up more than one per cent in morning trading.

Read more: Carillion JV nabs £160m contract for Dubai business district development

"We look forward to building on our existing strong relationship with the Defence Infrastructure Organisation, and to working with the DIO and senior military personnel to deliver a range of services that will help to improve the lives of service personnel," said chief executive Richard Howson.

Carillion, which maintains British railways, roads and military bases, said the contract will create further opportunities to demonstrate its commitment to the Armed Forces Corporate Covenant, which helps ex-service personnel find employment and supports the recruitment of Reservists.

Another contract in the bag is good news for the group, which revealed last month its profit for 2016 fell by five per cent to £146.7m due to delays in government spending since the Brexit vote as well as slower business in the Middle East due to low oil prices.

Read more: Carillion's won a £90m contract to build a comms centre in Cyprus

Related articles