Advertisement

Carillion awarded contact to build biggest UK hospital

Carillion, the FTSE 250 construction firm, has been awarded a contract by the new Royal Liverpool University Hospital Public Private Partnership (PPP).

Carillion, the FTSE 250 construction firm, has been awarded a contract by the new Royal Liverpool University Hospital Public Private Partnership (PPP).

The deal, the capital cost of which will be in the region of £335m, will see Carillion carry out the construction work and deliver support services for the hospital, from which it expects to generate approximately £80m of revenue over the life of the 30-year concession contract.

Advertisement - Article continues below

Carillion said it also expects to invest some £24m of equity in the project.

Carillion Chief Executive, Richard Howson, said: "We are delighted to have been selected to as the preferred bidder to deliver the new Royal Liverpool Hospital. This is our sixteenth PPP hospital in the UK and I believe our selection for this project reflects Carillion's outstanding reputation for delivering high-quality, value for money projects.

"This takes the total value of new orders and probable orders for Carillion in 2013 to over £2.0bn and demonstrates the benefits of our strategy of focusing on national construction projects."

Work on the project is expected to begin early next year, and is scheduled for completion in 2017.

The new hospital will be the largest in the country with 646 beds, including a 40-bed Critical Care Unit, 18 operating theatres and one of the largest emergency departments in the North West.

Construction of the new hospital is expected to contribute around £240m to the local economy, creating the equivalent of some 750 full-time jobs during the construction period, with 60% of these jobs going to local people. There is also a commitment to source at least 60% of materials locally, Carillion said.

The share price rose 2.46% to 278.70p by 09:20 on Thursday.

NR

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
What gold, bonds and tech stocks have in common
Stockmarkets

What gold, bonds and tech stocks have in common

"Risk off" or "safe haven" assets such as gold and government bonds have been doing well lately. But so have riskier tech stocks. That seems to defy c…
10 Jul 2020
Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020