ibusinesslines.com
ibusinesslines.com July 23, 2017


Carillion, partners win £1.4 bln in contracts

17 July 2017, 03:18 | Melissa Porter

Carillion saw the value of its shares fall by nearly £600m after it issued a profit warning

Carillion saw the value of its shares fall by nearly £600m after it issued a profit warning

EY has been brought in with a specific focus on cost reduction and cash collection. That may help reassure shareholders after a profit warning a week ago sparked a sell off that wiped 71 percent from the value of the company.

Carillion dismayed investors on July 10 by announcing weaker-than-expected profit growth, the departure of its chief executive officer, the suspension of full-year dividends and a write-down related to various projects that analysts said may include work on Royal Liverpool Hospital. "My priorities are to reduce the Group's net debt and create a balance sheet that will support Carillion going forward".

He has been replaced by Mr Cochrane on an interim basis while a search is undertaken for a permanent boss.

But shares are up 8.64% as of 08:57 a.m. BST (03:57 EST) on Monday morning following news that Carillion has won a pair of HS2 contracts worth £1.4 billion.


"But it's hard to see an bad lot to be cheerful about".

Shares in Carillion plunged more than 70 per cent at one point last week, wiping nearly £600m off its market cap, after it said on Monday it expected to take £845m of writedowns on some of its largest projects.

Under its interim chief executive Keith Cochrane, Carillion said it was taking immediate action to generate significant cashflow in the short term and cut its debt.

The company said it had identified a number of ways to reduce average net borrowing, including further cost efficiencies, an increased focus on managing working capital and on recoveries and cash collection.



Other News

Trending Now

Tutor Perini Corporation (NYSE:TPC) Given Average Recommendation of "Buy" by Analysts
The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. After $0.27 actual EPS reported by Tutor Perini Corp for the previous quarter, Wall Street now forecasts 111.11% EPS growth.

Kareena Talks Pregnancy And Diet In Facebook Live Video
Rujuta Diwekar 'Pregnancy Notes: Before, During and After book was unveiled in the presence of new-mom Kareena Kapoor Khan . Kareena shares a great bond with Saif's daughter. "So he is cooking pasta and is eating all of that".

101-Year-Old Female Sprinter Breaks 100-Meter Dash Record
A 101-year-old just became the oldest woman ever to compete in the USA Track and Field Outdoors Masters Championships on Saturday. She completed 100 meters in 40.12 seconds, she did it six seconds before the previous world record for aged 100 or older.

Bruce Arena makes six changes to US MNT Gold Cup roster
Dwyer scored the lone goal against Panama, while also being involved in the buildup for two of the three goals scored on Saturday. Probably the flawless way to do that is mix them in with more veteran players, but we wanted to give everyone an opportunity.

Tiemoue Bakayoko reveals Antonio Conte's message after joining Chelsea in £40million deal
It seems increasingly clear that Diego Costa's journey at Chelsea is nearing its end, yet the escape might follow a troubled path. Drogba, one of the club's most celebrated players of all time, has also proved inspirational, albeit from a distance.

AC Milan in £41million offer for Manchester United transfer target Renato Sanches
Several top clubs have shown an interest in signing the Portuguese midfielder this summer, so he is not short of options. Staying at Bayern, though, would also mean a battle to make it into the first team.

Boy trapped inside hot BMW for 2 hours in Florida dies
The toddler was stuck inside a vehicle parked outside his family home. "He was always a jumpy little boy", he said. A police spokesperson said that when officers arrived, they noticed Khayden was unconscious inside the auto .