CJ50 Market data: Carillion on-track for success

PDF of market data November 2006

November saw a significant drop in new orders compared with October, with the total value falling by more than half a billion pounds. The total was also significantly down on last November.

The civils sector continued to lead the way, with private commercial business also healthy. However, public sector work almost halved compared with October’s figures, industrial business experienced a slump, and social housing and commercial work were also a little down.

Carillion was a clear winner in November, with a lead of more than £70m on the rest of the field. The company’s second CJ50 win of year (the first was back in April) was largely thanks to the announcement of its share of the £363m Transport for London contract to create the new East London rail line between Dalston Junction in the north and West Croydon in the south. The project, which is being built in joint venture with Balfour Beatty, is scheduled for completion in late 2010.

Carillion reported £39.4m of work for Carillion Enterprise, its specialist arm for Defence Estates work, to build barracks in the North East. It also announced £28m of work on Carmarthen’s new Queen Elizabeth High School for Carmarthenshire County Council.

Laing O’Rourke’s £199m haul was largely in the social housing sector, thanks to a substantial £120m contract for South-East-based Aldwyck Housing Association. Its other significant wins, both for £30m, were with Capital & Counties to build shops in Cardiff, and an office build in Glasgow for PPG Metro.

Well behind in third place was Skanska, with the vast majority of its work in civils, spread over seven contracts. Snapping at its heels was Wates, with a portfolio fairly evenly spilt between the housing and commercial markets. Its largest deal came from Newcastle City Council, which awarded the contractor £40m of housing work.

Balfour Beatty fell from the top spot it has dominated for much of the year to fifth place, despite the distinction of winning the largest number of new contracts – a staggering 63.

Morrison was the highest-placed new entrant in sixth place, benefiting from the buoyant infrastructure market to confirm 16 new contracts in November. Kier fell four places to seventh, with its portfolio split evenly between public and commercial work.

Centros Miller and St Edmundsbury Borough Council have awarded new entrant Taylor Woodrow Construction the £47m building contract for their new mixed-use development on the former Cattle Market in Bury St Edmunds, putting the contractor in eighth place. The scheme will extend the town centre by forming two new shopping streets and a new public square.

Bovis Lend Lease, another new entrant in ninth position, announced £49m of work. The bulk of this was on the St David’s 2 mixed-use development in Cardiff for Land Securities and Capital Shopping Centres.

Miller rose 15 places to round off the top 10. The largest of its six wins for the month was £16.6m of work on Bristol’s Broad Quay mixed-use scheme for Rex Developments.

One of the quirkiest awards was Shrewsbury and Atcham Borough Council’s announcement that Willmott Dixon is to design and build a new £19m riverside cultural hub for Shrewsbury. The venue will boast a main auditorium as well as a studio space housing a diverse range of performances, plus two café bars.

Other notable contracts included ISG InteriorExterior’s £25m hotel scheme for TAG Farnborough Enterprises, pushing the contractor from 40th to 14th place. A new entrant in 23rd position, Buckingham, announced nearly £19m of infrastructure work for Prologis Developments in Northamptonshire. Other new entrants included Edmund Nuttall, Dean & Dyball, Stradform, Dyer 7 Butler, Lakehouse Contracts and Tolent.