Car­il­lion wins con­tracts with Net­work Rail

Yorkshire Post - Business - - BUSINESS -

TROU­BLED IN­FRA­STRUC­TURE gi­ant Car­il­lion has won two con­tracts with Net­work Rail to up­grade in­fra­struc­ture in the Mid­lands.

The com­pany said the first will see it spruce up ex­ist­ing track and in­fra­struc­ture on the route from Lon­don to Corby, which will gen­er­ate £62m of rev­enue.

A sep­a­rate deal through Car­il­lion Pow­er­lines, a joint ven­ture firm, will see work un­der­taken to com­plete the elec­tri­fi­ca­tion of the same route. This con­tract is ex­pected to gen­er­ate £260m of rev­enue over the next three years.

Car­il­lion, which has about 43,000 staff world­wide, has been thrown into cri­sis since a July trad­ing up­date sent shares tum­bling by more than 70 per cent in one week.

Ear­lier this year, the firm also re­vealed mam­moth half-year losses to­talling £1.15bn, hav­ing been dragged down by a se­ries of re­struc­tur­ing charges.

The profit warn­ing saw for­mer boss Richard How­son step down, with Car­il­lion an­nounc­ing re­cently that An­drew Davies is to take the hot seat in April.

Mr Davies is cur­rently the chief ex­ec­u­tive of Wates Group, where he has held the role since 2014.

Since Mr How­son’s de­par­ture, Keith Cochrane has been in­terim chief ex­ec­u­tive and has over­seen a re­fi­nanc­ing and the sale of non­per­form­ing as­sets.

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