Shares in troubled construction giant Carillion popped this morning after it signed two contracts with Network Rail which could net it almost £200m in revenues over the next three years.
Shares in the company rose 3.7 per cent to 47.7p after it said it had signed a contract with Network Rail to upgrade track and infrastructure on the route between London and Corby, which is expected to generate £62m in revenues of over the next two and a half years.
Meanwhile, a 50:50 joint venture between it and Powerlines Group signed a separate deal with Network Rail under which it will complete the electrification of the route from London to Corby. The deal will generate revenues of £260m for the joint venture over the next three years, it said.
Between them, the two deals add up to £192m for Carillion, which has been beset by woes in recent months after a profit warning in July set off a chain reaction of events, including the departure of key executives.
Last month City A.M. revealed it was locked in a £200m row with Qatar over money owed on a project linked to the 2022 World Cup.
Today Keith Cochrane, the company's interim chief executive, 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."