Carillion has said it paid 拢20m to restructuring its troubled rail business and integrate Mowlem after last year鈥檚 takeover.

The costs associated with the Mowlem deal are thought to account for about three-quarters of that amount.

This does not include the 拢135m hit that Carillion took to cover Mowlem鈥檚 problem contracts.

The contractor did have one piece of good news on Mowlem in its trading update for 2006. Its net debt for the year-end will be 拢110m, which is 拢90m less than expected when it was acquired last January.

The reorganisation of the rail business, which included the loss of about 300 jobs, cost about 拢5m.

Carillion, which will announce its preliminary results in March, said its results for the year would be 鈥渁head of the current forecasts鈥�.

The contractor said three new projects were expected to generate revenues of 拢325m. These are the south Ayrshire schools PPP scheme, an extension to the regional prime contract central for the Ministry of Defence and community clinical services in north London under the government鈥檚 independent treatment centre programme.