Financial watchdog launches probe into Carillion

Grant Prior 4 years ago
Share

The Financial Conduct Authority has launched an investigation into company announcements made by Carillion in the lead up to its recent profit warnings.

A brief Stock Exchange update this morning said: “The Financial Conduct Authority  has notified Carillion plc that it has commenced an investigation in connection with the timeliness and content of announcements made by Carillion between 7 December 2016 and 10 July 2017. 

“Carillion is cooperating fully with the FCA.”

Carillion issued a positive trading update on December 7 2016 where it predicted a rise in operating profits.

On March 1 2017 it published positive results for 2016 as group revenue jumped 14% to £5.2bn producing group pre-tax profits of £147m.

Chairman Phillip Green said in the results: “Given the size and quality of our order book and pipeline of contract opportunities, our customer-focused culture and integrated business model, we have a good platform from which to develop the business in 2017.

On July 10 2017 the firm issued a profit warning after setting aside an £845m provision to cover problem contracts, which saw its share price dive.

Carillion’s share price fell further in early trading on Wednesday to 17p. On December 7 2016 it stood at 240p.

The latest setback for the indebted group comes as former Wates chief executive Andrew Davies prepares to take over at Carillion from January 22.

His appointment has been brought forward as Carillion continues its fight to repair its balance sheet.

Interim CEO Keith Cochrane will step down when Davies joins but will remain with Carillion in an advisory capacity for a transition period.

This week it also emerged that the opening of Carillion’s £335m Royal Liverpool University Hospital job has been delayed again following construction problems.

The setback means the replacement for the city centre hospital, which has been identified as one of Carillion’s three big UK legacy contracts, is at least one-year behind schedule.

A Carillion spokesperson said: “While we are disappointed that the handover of the new hospital will be delayed, we remain focused on ensuring that it is finished to the highest quality and standard.

“We continue to work closely with the trust to arrange a handover in line with their plans to move in during the summer.”

Latest news

Massive Stewart Milne development goes into administration

Countesswells new town now in hands of administrators
2 days ago

Ex-Laing O’Rourke boss to head rejigged BAM UK business

BAM names new chief for combined UK and Ireland businesses in growth push
2 days ago

Robertson submits £150m Cardiff Arena plan

Arena work to start next Autumn with wider Atlantic Wharf regen scheme to follow
2 days ago

HS2 pioneers first ‘box-slide’ bridge over motorway

BBV will start initial site preparation over the Christmas holiday period
2 days ago

Rocks smash site huts as quarry blast goes wrong

Breedon Trading Ltd fined £300,000 after court hears worker was forced to run for cover
2 days ago

Sellafield names £250m HVAC key delivery partners

Balfour Beatty Kilpatrick and EJ Parker Technical Services take first integrated team deal
3 days ago

Cut-price home builds quadruple maintenance cost

Mount Anvil study attempts to quantify link between Capex and Opex costs
2 days ago

Ray O’Rourke to step down from Group Chief Executive role

New CEO Seamus French to join from mining giant Anglo American
3 days ago

TClarke on track for £500m revenue target

Orders surge to £525m setting fresh record for M&E specialist
3 days ago

Northern contractors still reeling from rail cancellations

Firms fear "economic black hole which will have a huge impact on regional SME contractors"
3 days ago

Go-ahead for McAlpine’s £43m Edinburgh concert hall job

Work to start next year on first concert venue in Edinburgh for over 100 years
3 days ago

Miller Homes fined £200,000 for polluting dyke

Court hears details of second incident at same Huddersfield site
3 days ago

Plans in for £60m Stoke goods yard quarter

Bowmer & Kirkland are working on the scheme under a pre-construction agreement
3 days ago

Quinn Infrastructure goes into administration

Rail M&E specialist contractor stops work on sites
4 days ago

Farrans to build £30m rotating Glasgow footbridge

Steel price rises blamed for 40% jump in rotating bridge cost
4 days ago

Brickability buys renewable energy specialist

Materials distributor buys new housing green energy specialist
4 days ago

RSK swoops for Yorkshire surveying specialist

Infrastructure surveying specialist Centara employs 60 staff
4 days ago

Former Amey director takes reins at renamed SSE Contracting

Zak Houlahan to lead Enerveo from December
4 days ago

Bouygues wins £30m Swansea zero carbon office

Firm to break ground in coming weeks on The Kingsway project
4 days ago

Sisk names new UK framework director

Rebecca Hartshorn to take on Scape framework development
4 days ago

Expanded starts work on giant HS2 station box

Construction will see 690,000 cubic metres of clay removed
5 days ago

Builders slam plans for electric car chargers in all new homes

Construction firms will foot the bill while electricity companies make the profits
5 days ago

Kier set for £32m Bournemouth council flats job

Work to start next year on four blocks of flats rising to 10 storeys
5 days ago

Severfield rises with record orders after strong first half

Orders soar to nearly £400m after Everton stadium award, shed and HS2 wins
5 days ago

Plans in for Manchester Red Bank enabling works

Council plans to spend £51m preparing way for up to 5,500 homes on old railway sidings
5 days ago

Triton bags biggest shed job yet

Firm eyes big shed delivery market after Stakehill 185 wins
5 days ago

Driver crushed between vehicles at builder’s merchant

Company fined £180,000 after court hears banksman had left yard area
5 days ago

£610m finance deal for Moda build-to-rent housing

£1.7bn Moda project pipeline targets Birmingham, Brighton & Hove and London
6 days ago

GMI names head for new North East business

GMI completes build-up of new north east team for regional expansion drive
5 days ago

National Highways halts first Smart motorway job

Balfour Beatty's £140m M3 smart motorway job put on hold
6 days ago

Contractor services