Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Carillion    CLLN   GB0007365546

CARILLION (CLLN)
My previous session
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsTweets

Carillion : shares plunge as rescue talks drag on

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/12/2018 | 07:40pm CEST
Carillion's Midland Metropolitan Hospital construction site in Smethwick

LONDON (Reuters) - British building and services company Carillion remains in "constructive discussions" with its creditors and suggestions they have rejected its business plan are incorrect, the company said on Friday.

Carillion shares earlier plunged 30 percent to a new low after Sky News reported the company had put administrators on standby and the government said it had held a crisis meeting over the fate of the business - a major provider of public services employing around 43,000 people.

A person familiar with the matter also told Reuters that creditors did not like the plan put forward by the company.

However, Carillion said it remained in constructive talks over securing additional short term financing and that longer term discussions were also continuing.

Any agreement was likely to involve the raising of new capital and the conversion of existing debt to equity, which would result in "significant dilution to existing shareholders," it said in a statement.

Tensions around the 200-year-old company have been ratcheting up for weeks and on Thursday ministers overseeing everything from justice to transport, health and education met to discuss how they should respond to the possible demise of a business that plays a central role in British public life.

"Ministers did meet yesterday, there are ongoing meetings," a spokesman for Prime Minister Theresa May said. "We are monitoring this situation closely and will continue to do so."

One of many private companies to run public services in Britain, Carillion is fighting to survive after costly contract delays and a downturn in new business prompted a string of profit warnings and a first-half loss of more than 1 billion pounds ($1.4 billion).

Shares in Carillion closed down 29 percent at 14 pence, after touching a new low of 12.5 pence and compared with a price of 240 pence a year ago. Its market value of 64 million pounds compares with debt and liabilities of 1.5 billion pounds, according to analysts.

Any collapse would be felt across Britain and also in Canada and the Middle East where it has worked on landmark projects.

The company provides services to government departments including justice, health and education, and has built hospitals, roads and rail lines.

GOVERNMENT SUPPORT?

Spun out of Tarmac nearly 20 years ago and having bought Alfred McAlpine in 2008, Carillion has worked on key construction projects including London's Royal Opera House, the Suez Canal road tunnel and Toronto's Union Station.

In July last year it won contracts to build Britain's new High Speed 2 rail line, a key project that will better connect London with the north of England.

The GMB trade union called on the government to protect Carillion's workers and pensioners, but said the company should not be bailed out.

"Handing Carillion bosses a blank cheque bail out is completely unacceptable – company bosses should not be rewarded for failure with public money," it said in a statement.

The company met with creditors including RBS and Santander UK on Wednesday to ask them to consider a debt extension or roll-over in financing talks and it was expected to talk with the Pension Regulator on Friday.

Its pension deficit stands at around 580 million pounds.

The person familiar with the situation, who asked not to be named due to the sensitivity of the situation, said the government needed to get involved to help prop up the supplier. The Financial Times said the creditors rejected the deal.

Many of Britain's service providers have been hit in recent years after they took on work during the financial crisis at low prices for long-running, fixed-price contracts to keep work coming in.

The contracts left little room for delay or failure and have led to problems for groups including Capita, Mitie and Interserve.

Carillion's fight for survival is being led by interim boss and industry veteran Keith Cochrane, a former CEO of engineer Weir Group. New CEO Andrew Davies, head of family-owned builder Wates Group and formerly with defence company BAE Systems, joins on Jan. 22.

(Additional reporting by David Milliken, Lawrence White and Justin George Varghese; Editing by Paul Sandle and Mark Potter)

By Kate Holton and Andrew MacAskill

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CARILLION
09/25EMAAR PROPERTIES : and Al-Futtaim acquire Carillion`s stake in Dubai`s Emrill
AQ
09/23CARILLION : Emaar Properties raises stake in Emrill
AQ
09/23EMAAR PROPERTIES : and Al-Futtaim acquire Carillion's stake in Dubai's Emrill
AQ
09/20CARILLION : Builder Kier's strong order book helps it ride out Brexit uncertaint..
RE
09/19KPMG admits misconduct on BNY Mellon reports, says watchdog
RE
08/30CARILLION : Graham acquires Carillion share of North Battleford hospital build
AQ
08/07INTERSERVE : shares drop after posting loss on higher expenses
RE
08/01Capita asks staff to join board in culture shake-up
RE
07/16John Laing Infrastructure in talks with funds for possible $1.9 billion buyou..
RE
07/10CARILLION : Kier Group to sell non-core assets
RE
More news
News from SeekingAlpha
02/15Time To Start Looking At The Looming Pensions Crisis 
01/31Clearing Out Carillion's Cupboards 
01/28Atlantic Investment Management 2017 Annual Letter 
01/23The Carillion Whitewash 
01/175 Red Flags That Could Have Saved You From The Collapse At Carillion 
Financials (GBP)
Sales 2017 4 735 M
EBIT 2017 185 M
Net income 2017 -
Debt 2017 707 M
Yield 2017 -
P/E ratio 2017 -
P/E ratio 2018 -
Capi. / Sales 2017 0,16x
Capi. / Sales 2018 -
Capitalization 61,0 M
Chart CARILLION
Duration : Period :
Carillion Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Consensus
 
Mean consensus
Number of Analysts 0
Average target price 0,05  GBP
Spread / Average Target -65%
Managers
NameTitle
Andrew Peter Davies Chief Executive Officer
Philip Nevill Green Non-Executive Chairman
Andy Jones Chief Operating Officer
Emma Mercer Chief Financial Officer
Alison Horner Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
CARILLION-17.68%80
VINCI-9.41%53 875
CHINA STATE CONSTRUCTION ENGINEERING CORPORATION-21.00%30 776
CHINA COMMUNICATIONS CONSTRUCTION CO LTD-14.91%25 612
CHINA RAILWAY GROUP LTD-9.42%24 395
LARSEN & TOUBRO-3.56%23 146