Carillion cautions about rail prospects

British construction and support services firm Carillion said today it faced an “uncertain” outlook for its rail business today after suffering declining volumes last year.

The Wolverhampton-based firm said revenues in its rail market fell 10% to £368m (€412m), reflecting a decline in rail infrastructure work. Carillion axed 250 staff from the business last year.

Despite winning a share of the East London Line extension project, Carillion is also threatened by the loss of £80m (€118m) in renewals work as key client Network Rail is reducing its contractors from six to four later this year.

Network Rail also banned Carillion from bidding for rail work after health and safety incidents last August, although the rail operator lifted the ban in February.

Finance director Chris Girling said: “There is always a risk that we will come fifth, but we are looking at it as an opportunity rather than a risk.”