Carillion to present new plan as it battles for survival

Carillion’s battle for survival is reaching a crucial phase as it prepares to present a new business plan to lenders this week.

The construction group, which employs around two-thirds of its 30,000-strong workforce in the UK, has been in a crisis since it revealed an accounting black hole last summer.

Its share price is down 90% since July 2016 and has a market value of around £80m – but has debts in excess of £1bn.

Carillion needs to persuade its banks, which include Santander, HSBC and Barclays, to support it further, or it may need to seek a Government rescue.

It is a key Government contractor, including on HS2, while the Wolverhampton-based group is involved in major projects in the region, such as the Paradise development.

The business plan will be presented to creditors and stakeholders on Wednesday.

Incoming chief executive Andrew Davies takes over in two weeks and faces a overflowing in-tray. Among that is the investigation, confirmed last week, by the Financial Conduct Authority into Carillion’s public statements about its finances in the months leading up to its share price crash.

Click here to sign up to receive our new South West business news...
Close