Contract loss for Carillion

Wolverhampton-based construction group Carillion has been dumped as a long-term contractor by Network Rail, losing tens of millions of pounds worth of future work.

It means the loss of nearly a fifth of the workload at Carillion’s rail business, but the firm said today there would be no job losses.

The shock move comes just a week after Carillion said it was hoping to increase its business with Network Rail, which runs the nation’s railtrack system.

Carillion immediately issued a statement to the City, saying: “This decision will have no material impact on Carillion’s earnings in 2007 and beyond.”