This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

Chief executive quits following Carillion profit warning

12 July 2017

Following its profit warning announcement, Carillion has announced a number of measures to address the issues identified as the cause.

Reported in the Financial Times and other national media publications earlier this week, the announcement saw the company's share price drop by nearly 40%.

It has attributed the missing of revenue targets to difficulties within markets and the measures implemented to cut borrowing.

Operating profits for the first half of the year would also be lower than expected, the company said, although no further explanation was provided.

Chief executive Richard Howson has stepped down from his role, although he will remain with the business for up to 12 months to assist with its transition.

Non-executive director Keith Cochrane has replaced Mr Howson on a temporary basis until the appointment of a permanent chief executive.

In addition to ramping up debt-reduction measures, Mr Cochrane will oversee "a thorough review of the business and the capital structure", according to the group's statement.

Late payment from construction work combined with a lack of new contracts saw borrowing increase to £695 in the first half of this year, compared with £586.5m in 2016.

Dividend payments had been cancelled as a result and the company outlined further measures, including leaving some markets and being more selective in taking on new contracts, in order to reduce further risks.

Carillion is now expected to record revenues of between £4.8bn and £5bn, reduced from a previous estimate of just over the £5bn mark.


Print this page | E-mail this page

MOST VIEWED...


Article image Why the Law Says You Need a Nappy Bin Disposal Service

At home, parents are used to disposing of their babies’ used nappies the same way they do any other domestic waste - bagging it up and sticking it in the rubbish for general collection.Full Story...

Article image Companies sign up to employ ex-offenders

More than 120 businesses have recently registered to work with prisons to provide employment options for offenders.Full Story...

Carel Group acquires 100% of Hygromatik GMBH

Legionella failings result in substantial fine and updated water management processes

Total Solutions MD Sharmin Akter at the Facilities Show 2018

http://www.fsifm.comhttps://www.pickfords.co.uk/https://www.ppspower.com/https://cleaningshow.co.uk/londonhttps://www.daikinapplied.uk/service