Carillion

Not to be confused with Carillon.
Carillion plc
Public limited company
Traded as LSE: CLLN
Industry Facilities management, Construction, Civil engineering
Founded 1999
(demerger from Tarmac)
1903
(foundation)
Headquarters Wolverhampton, West Midlands, United Kingdom
Key people
 Philip Green (Chairman)
Richard Howson (CEO)
Revenue £4,586.9 million (2015)[1]
£234.4 million (2015)[1]
£139.4 million (2015)[1]
Number of employees
 circa 40,000 (2015)[2]
Website www.carillionplc.com

Carillion plc is a British multinational facilities management and construction services company headquartered in Wolverhampton, United Kingdom. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

History

Carillion was created in July 1999, by a demerger from Tarmac, which was founded in 1903; the new company included the former Tarmac Construction contracting business and Tarmac Professional Services.[3]

Acquisitions

In September 2001, Carillion acquired the 51% of GT Rail Maintenance it did not already own, thereby creating Carillion Rail.[4] In August 2002, Carillion bought Citex Management Services for £11.5 million[5] and, in March 2005, it acquired Planned Maintenance Group for circa £40 million.[6]

After that, in February 2006, Carillion went on to acquire Mowlem, another United Kingdom support services firm, for circa £350 million[7] and in February 2008, it acquired Alfred McAlpine, yet another United Kingdom support services firm, for £572 million.[8] Then, in October 2008, Carillion bought Van Bots Construction in Canada for £14.3 million.[9]

In April 2011, Carillion bought Eaga, an energy efficiency business, for £306 million[10] and in December 2012, it acquired a 49 per cent interest in The Bouchier Group, a company providing services in the Athabasca oil sands area, for £24m.[11] Then, in October 2013, the company bought the facilities management business of John Laing.[12]

In August 2014, the company spent several weeks attempting a merger with rival Balfour Beatty. Three offers were made; the last bid, which valued Balfour Beatty at £2.1 billion, was unanimously rejected by the Balfour Beatty board on 19 August 2014. Balfour refused to allow an extension of time for negotiations which could have prompted a fourth bid. Carillion subsequently announced the same day it would no longer pursue a merger with its rival.[13] In December 2014, Carillion acquired a 60% stake in Rokstad Power Corporation, a Canadian transmission and distribution business, for £33 million.[14]

Carillion acquired 100% of the Outland Group, a specialist supplier of camps and catering at remote locations in Canada, in May 2015[15] and a majority stake in Ask Real Estate, a Manchester-based developer, in January 2016.[16]

Blacklisting involvement

In 2009, Carillion was revealed as a subscriber to an illegal construction industry blacklisting body, The Consulting Association (TCA), though its inclusion on the list was mainly due to its previous ownership of Crown House Engineering (acquired by Laing O'Rourke in 2004), and previous use of TCA within Mowlem (acquired by Carillion in 2006). Carillion made two voluntary submissions to the House of Commons' Scottish Affairs Committee, one in September 2012,[17] and another in March 2013, relating to its involvement with TCA.[18]

In July 2014, Carillion was one of eight businesses involved in the 2014 launch of the Construction Workers Compensation Scheme,[19] though this was condemned as a "PR stunt" by the GMB union, and described by the Scottish Affairs Select Committee as an "an act of bad faith".[20] As one of the contributors to the scheme, Carillion reported in August 2016 "a non-recurring operating charge of £10.5 million" representing the compensation and associated costs it expected to pay.[21]

Operations

The Yas Viceroy Abu Dhabi Hotel built by Carillion

Carillion provides facilities management services and also undertakes a range of construction projects including roads and hospitals. Most of its business is in the United Kingdom, but it also operates in several other regions, such as Canada, the Middle East and the Caribbean.[22]

Carillion Rail carries out track renewals on the rail network, and contract work for Network Rail.[23]

In November 2013, Carillion was fined £180,000 plus £28,551 in costs for breaches of health and safety regulations, which led to a motorcyclist being completely paralysed in an accident, on the A12 road in England. The Health and Safety Executive said that Carillion had failed to put up signs, to warn motorists of a road closure in good time.[24]

Its subsidiary, Clinicenta, had a contract to run a treatment centre at Lister Hospital in Stevenage which was terminated in 2013 after the Care Quality Commission found the unit was not meeting minimum standards.[25]

In November 2016 it was reported that Nottingham University Hospitals NHS Trust planned to end its estates and facilities services contract, awarded in April 2014 with the company after nurses had been forced to clean the wards because of a shortage of 70 cleaning staff.[26]

Major projects

Major projects involving Carillion have included:

The Beetham Tower, Manchester built by Carillion

In October 2013, on a visit to China, George Osborne announced plans for a £800m project to be known as Airport City Manchester and due to be completed in phases, for which, Carillion would partner with Chinese firm Beijing Construction Engineering Group (BCEG).[55]

Long term Contracts

In 2009 Ontario Ministry of Transportation awarded Carillion eight multi-year contracts (C$87 million per year) for snow removal and salting operations on several 400-series highways in Ontario.[56]

References

  1. 1 2 3 "Preliminary Results for year ended 31 December 2015" (PDF). Carillion. Archived from the original (PDF) on 31 March 2016. Retrieved 19 March 2016.
  2. ↑ "Key facts". Carillion. Retrieved 15 March 2015.
  3. ↑ "Tarmac to split in two". BBC News. 1999-03-16. Retrieved 2008-07-13.
  4. ↑ "UK Business Activity Report". UK Business Park. Archived from the original on 2009-06-05. Retrieved 2010-03-28.
  5. ↑ "Carillion buys Citex Management Services". Construction News. 2002-08-22. Retrieved 2009-07-26.
  6. ↑ "Carillion buys M&E firm for £40m". Electrical Times. 2005-03-09. Archived from the original on 2013-08-01. Retrieved 2012-03-24.
  7. ↑ "Construction firms agree takeover". BBC News. 2005-12-07. Retrieved 2008-07-13.
  8. ↑ "Carillion agrees to buy McAlpine". BBC News. 2007-12-10. Retrieved 2008-07-13.
  9. ↑ "Carillion's delight at £205m boost". Express & Star. 2008-10-09. Retrieved 2012-04-13.
  10. ↑ Mason, Rowena (2011-02-12). "Carillion buys Eaga for £300m in bet on 'green home' revolution". London: Daily Telegraph. Retrieved 2011-11-21.
  11. ↑ Morby, Aaron (2012-12-12). "Carillion buys into Canadian civils firm". London: Construction Enquirer. Retrieved 2014-10-29.
  12. ↑ "Carillion buys John Laing's FM business". Building. 21 October 2013. Retrieved 9 February 2015.
  13. ↑ "Balfour Beatty rejects latest Carillion merger offer". The Guardian. 20 August 2014. Retrieved 21 August 2014.
  14. ↑ "Carillion buys Canadian power business". Building. 1 December 2014. Retrieved 14 June 2015.
  15. ↑ "Carillion goes on £63m camping trip". FT. 29 May 2015. Retrieved 19 March 2016.
  16. ↑ "Carillion buys majority stake in developer Ask". Building. 7 January 2016. Retrieved 9 April 2016.
  17. ↑ Blacklisting in employment: Written evidence submitted by Carillion, September 2012. Retrieved: 7 September 2015.
  18. ↑ Supplementary submission from Carillion plc to the House of Commons Scottish Affairs Committee - Blacklisting in Employment - March 2013. Retrieved: 7 September 2015.
  19. ↑ "Construction blacklist compensation scheme opens". BBC News: Business. BBC. 4 July 2014. Retrieved 7 September 2015.
  20. ↑ "Scottish Affairs - Seventh Report Blacklisting in Employment: Final Report". www.parliament.uk. Scottish Affairs Committee. Retrieved 7 September 2015.
  21. ↑ "Half-year financial report for the six months ended 30 June 2016" (PDF). London Stock Exchange. Retrieved 24 August 2016.
  22. ↑ "Carillion strategy protects it from cuts". Contract News. 8 December 2010. Retrieved 2011-02-26.
  23. ↑ "Carillion wins £122m Network Rail contracts". City AM. 3 July 2013. Retrieved 2013-09-27.
  24. ↑ "Suffolk road crash: Wolverhampton firm fined £180,000". BBC News. 8 November 2013. Retrieved 9 November 2013.
  25. ↑ "Failed firm's £53m from Labour NHS deal: Taxpayers foot huge bill after ministers terminated contract when GPs stopped referring patients to failing hospital unit". Daily Mail. 2 August 2013. Retrieved 29 September 2014.
  26. ↑ "Trust seeks to terminate major £200m contract". Health Service Journal. 28 November 2016. Retrieved 28 November 2016.
  27. ↑ "Royal Opera House". Carillion. Archived from the original on 2010-01-04. Retrieved 2008-07-13.
  28. ↑ "Tate Modern". Carillion. Retrieved 2008-07-13.
  29. ↑ "Bright start for Star City". I-FM. 10 July 2000. Retrieved 2008-07-13.
  30. ↑ "Darent Valley Hospital: The PFI contract in action". National Audit Office. 2005. Retrieved 5 June 2012.
  31. ↑ "Carillion". Alawi Enterprises L.L.C. Archived from the original on 2008-02-16. Retrieved 2008-07-13.
  32. ↑ "Great Western Hospital, Swindon to axe up to 200 jobs". Labour Net. Retrieved 2006-10-26.
  33. ↑ "Copenhagen's First Metro Line Takes Shape". International Railway Journal (republished by High Beam). 1999-09-01. Retrieved 2008-07-13.
  34. ↑ "Carillion set for growth". BBC News. 2000-09-19. Retrieved 2008-07-13.
  35. ↑ "M6 Toll (formerly Birmingham Northern Relief Road)". The Motorway Archive. Archived from the original on 2009-06-23. Retrieved 2008-07-13.
  36. ↑ "Beetham Tower Manchester". Skyscraper News. Retrieved 2008-07-13.
  37. ↑ "On the Roof for the Oxford Children's Hospital: Lord Drayson 'tops out' the Oxford Children's Hospital.". Oxford Radcliffe Hospitals NHS Trust. Archived from the original on 2008-02-18. Retrieved 2008-07-13.
  38. ↑ "New high level bridge boosts jobs and regeneration in North Kent". Highways Agency (London). 2006-07-03. Retrieved 2008-07-13.
  39. ↑ "New hospital one step closer to opening". Brampton Guardian. 3 July 2007. Retrieved 2012-06-05.
  40. ↑ "Alstom participates in the European rail network". Web Trains. 13 November 2007. Archived from the original on 2013-07-09. Retrieved 2012-03-24.
  41. ↑ "Full steam ahead for Aylesbury Vale Parkway". Bucks Herald. 2007-08-23. Retrieved 2012-03-24.
  42. ↑ "Carillion appointed on Portsmouth PPP". HD. September 2003. Retrieved 2009-06-24.
  43. ↑ "Eight new projects take shape at Dubai Festival City". Building. 7 October 2008. Retrieved 14 June 2015.
  44. ↑ "The right formula: Abu Dhabi's Yas Hotel". Building. 30 October 2009. Retrieved 2010-01-15.
  45. ↑ "Al-Futtaim Carillion wins New York University contract in Abu Dhabi". MEED. 28 April 2010. Retrieved 22 August 2013.
  46. ↑ "Women make their mark on the 2012 Olympic site". BBC. 7 November 2010. Retrieved 15 April 2012.
  47. ↑ "Carillion land Heathrow Terminal 5 contract". Builder & Engineer. 11 September 2007. Retrieved 23 August 2013.
  48. ↑ "A royal opening for the Rolls Building". Ministry of Justice. Retrieved 29 August 2016.
  49. ↑ "Carillion Alawi wins big at CW Awards - Oman". Construction Week. 28 March 2012. Retrieved 23 August 2013.
  50. ↑ "Carillion starts work on Birmingham's £193m library". Building. 8 January 2010. Retrieved 23 August 2013.
  51. ↑ "Carillion to build £275m parliament complex in Oman". Building. 23 July 2009. Retrieved 23 August 2012.
  52. ↑ "Bristol superhospital to cost £430 million". Bristol Post. 3 March 2009. Retrieved 14 June 2015.
  53. ↑ "Liverpool FC chooses Carillion for £75m Anfield makeover". The Telegraph. 2 July 2014. Retrieved 2 July 2014.
  54. ↑ Robyn Doolittle (26 May 2014). "Over budget and behind schedule, Toronto Union Station project may miss Pan Am games deadline". Globe and Mail. Toronto. Retrieved 1 September 2015.
  55. ↑ "£800m Chinese investment for Manchester's 'Airport City' as UK visa rules are relaxed". London: Daily Mail. 14 October 2013. Retrieved 18 October 2013.
  56. ↑ "Ministry investigates Carillion again over salting of highways to clear snow". thestar.com. 6 January 2016. Retrieved 7 January 2016.
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