Carillion to be relegated from FTSE 250
Carillion’s relegation from the FTSE 250 is expected to be confirmed today after it has endured a torrid few months.
The Wolverhampton-based group is now the smallest company by market value on the index, and is currently worth less than half than Petra Diamonds, which sits one place above it.
Carillion’s shares have been on a downward trend since early 2015, when its share price of around 360p gave the group a market value of more than £1.5bn.
Its value fell by nearly half to early July this year. But the construction group issued a major profit warning and chief executive Richard Howson departed, while it launched a major review of the business.
Shares crashed 75% in three days, and have plateaued since. Last night it closed at 48p, giving it a market value of just over £200m.
The FTSE 100 and FTSE 250 indexes have quarterly reviews, to make sure they contain the largest stock market-listed companies.
Subprime lender Provident Financial, which suffered a 66% fall in its share price in one day earlier this month, is expected to be replaced in the FTSE 100 by NMC Health.
Changes made by the reshuffle will come into effect on September 18.
