Home news Troubled Carillion reveals City watchdog probe

Troubled Carillion reveals City watchdog probe

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Carillion has revealed it is facing an investigation by the Financial Conduct Authority (FCA) following a torrid 2017 in which it issued three profit warnings.

The troubled construction and outsourcing group issued a statement to the City on Wednesday morning in which it said the City watchdog was investigating the “timeliness and content” of announcements it had made between 7 December 2016 and 10 July 2017.

There were no further details.
The infrastructure specialist, which is among the major contractors on the HS2 rail project, saw its share price collapse by more than 90% last year and its chief executive depart as it scrambled to reduce its debt pile and turn around badly performing contracts.
At the time of its latest profit warning, last November, it had admitted being close to breaching its debt covenants but it subsequently secured a deal with its lenders to give it more breathing space.
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The company, which employs more than 40,000 staff, is currently being led by interim chief executive Keith Cochrane, who took over in July after the departure of Richard Howson.
A new CEO, Andrew Davies, is due to start work later this month.
The Government has previously said it is continuing to monitor Carillion’s turnaround progress as it prepares to step up work on HS2.

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The company’s other high-profile projects include work on London’s Battersea power station and Liverpool’s Anfield stadium.
Shares were trading 4% lower on Wednesday – just above 17p each.

Source: SKY News