Embattled Carillion enjoys strongest day for months

Embattled Carillion enjoyed one of its strongest days on the markets for several months as investors reacted positively to the group’s announcement of a £140m credit facility and the £50m disposal of part of its UK healthcare operation.

While any growth is relative for a business that saw 75% of its market cap wiped out earlier this summer, the Wolverhampton company will take its victories where it can.

Shares in the group closed yesterday up almost 6.3% at 46.50.

The company has also revealed some of its short-term plans to restore confidence in the business.

The sale of the healthcare operation to Serco has been followed by a pledge from the company that it intends to dispose of the remaining contracts in its UK healthcare facilities management portfolio during 2018.

Currently, Carillion said while it was continuing to pursue the disposal of the group’s Canadian businesses, it was also evaluating whether a better result might be to retain – at least for now – certain of those businesses.

Meanwhile, it said it would be continuing with its programme of non-core disposals with aggregate consideration anticipated to be more than £300m by the end of 2018.

Keith Cochrane, Carillion’s interim chief executive, said: “Whilst our customers and creditors continue to be supportive, much remains to be done. We remain focused on executing our disposals and cost savings programmes while continuing our discussions with our lenders and other stakeholders to explore further ways of strengthening Carillion’s balance sheet.”

Further announcements will be made in due course.

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