Economy

Carillion half year profits at £1.15bn loss

Carillion half year profits at £1.15bn loss”

A Cabinet Office spokesperson said: "Carillion is a major supplier to the government with a number of long-term contracts".

Beleaguered Wolverhampton-based facilities management giant Carillion made a £1.1bn pre-tax loss during the first half of the year.

There is no further damage to report on construction contracts, beyond the previously announced provision of £845m being booked for loss-making jobs, but there is a further £200m provision to cover losses on support services contracts.

According to BBC, Carillion's full-year revenues are now forecast to be between £4.6bn-£4.8bn, down from a previous expectation of £4.8bn-£5bn.

Underlying pre-tax profit was down 40% to £50.3m due to the phasing of PPP equity disposals and the trading of contracts with provisions at zero margin.

Interim boss Keith Cochrane described the results as "disappointing".

"It reflects the issues we flagged in July and the additional £200m provision for our Support Services business that we have announced today".

Troubled UK building and services firm Carillion has seen its share price fall 18% after it said full-year results would be below current expectations.

"No-one is in any doubt of the challenge that lies ahead", said Mr Cochrane.

Ministers leapt to the support of the firm, saying the government is "supportive" of the firm.

Carillion said transformation of the business "including a radical change in culture" will take three to five years.

"We remain supportive of their ongoing discussions with their stakeholders and await future updates on their progress". The company's chief executive had to step down after the management said it was struggling to stay within its borrowing limits. Full-year average net debt is expected to be between £825m and £850m.

The group had previously blamed poor orders on some delays in United Kingdom public spending decisions following the European Union referendum, while low oil prices had hit customer spending in the Middle East.

He added that a strategic review launched by Carillion in the summer has enabled the business "to get a firm handle" on its problems.

Shares in Carillion rose earlier this week after a newspaper reported that a Middle Eastern buyer was considering a bid for the group.

"Our focus is to complete the disposal programme, accelerate our action to take cost out of the business and get our balance sheet back to a place where it can support Carillion going forward".

To this end, Carillon said that discussions are ongoing regarding sales of its business in Canada and the United Kingdom healthcare arm.



Like this

loading...
loading...

Latest


29 September 2017
Cricket SA and CE Haroon Lorgat part ways
Thabang Moroe, CSA's vice-president, has been appointed interim CEO but the federation will advertise the position. He will receive support from the CSA president Chris Nenzani and independent board member Louis Von Zeuner.

29 September 2017
Juncker: no talk on Britain-EU trade deal yet
Brexit Secretary David Davis during a Sunday interview on the BBC: "I mean firstly in 2019 we will leave". He added that "I don't know whether we will be able to make that call until later in the month".

29 September 2017
Congressman Thompson: Federal Response in Puerto Rico Woefully Inadequate
Hearing of supplies floundering and not getting to suffering Puerto Ricans is frustrating to the volunteers behind this effort. When you go to Puerto Rico you don't even get charged roaming charges - that's how American Puerto Rico is.

29 September 2017
Soha Ali Khan and Kunal Khemu blessed with a baby girl!
Kunal Khemu on the other hand is gearing up for the release of his next project, Golmaal Again , this Diwali. Kunal proposed Soha Ali in the city of love Paris and later they got married in January 2015.

29 September 2017
Ramaleela: While Dileep remains in jail, his performance wins over audience
Prayaga Martin, Renji Panicker, Mukesh, and Vijayaraghavan are among the other prominent actors to feature in the movie. Ramaleela the malayalam movie which stars controversial actor Dileep, is up for release this thursday on September 28.

29 September 2017
DNA shows that clown who killed woman later married her widower
Although Keen-Warren was previously identified as a suspect, it took 27 years for police to place charges. They hoped advances in DNA analysis and reinterviewing key witnesses would lead to a break in the case.

29 September 2017
I'm not too anxious about the point difference, says Sebastian Vettel
This time it is last year's runner-up, Max Verstappen . "There are lots of turning points within a year", he told reporters. It allowed Mercedes' Lewis Hamilton to win from fifth on the grid to extend his championship lead from three points to 28.

29 September 2017
Minerals Technologies Inc (MTX) Triple EMA Gaining Momentum
The Average Directional Index or ADX is technical analysis indicator used to describe if a market is trending or not trending. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal.

29 September 2017
Mourinho Provides Injury Update On Three Key Players
With Belgium already qualified for the World Cup, Mourinho hopes Fellaini will be rested during the worldwide break next week. This long a travel, sandwiched by two Premier League games, is invariably going to have a taxing impact on the players.

29 September 2017
No need of enemy in presence of Kh Asif: Imran
During his arguments, PTI counsel Naeem Bukhari said that an email has been sent to Imran's former wife Jemima Khan. Justice Umar said that the documents do not prove that Imran Khan brought money back from London.