Infrastructure giant posts £1bn in half year losses
INFRASTRUCTURE giant Carillion’s woes appear to be showing no sign of disappearing after the listed group posted half-year losses of more than £1 billion.
The company, which recently won major government contracts to build part of the new HS2 high-speed rail network, said its pre-tax loss was £1.15 billion for the six months to June 30, 2017.
Wolverhampton-based Carillion led the development of the Library of Birmingham and is also playing a key role in the £700 million Paradise project in the city centre.
But this announcement is the latest in a troubled few months for the group which saw shares fall by 70 per cent in one week following a profit warning in July.
And earlier this month, the company announced a major shake-up at the top with Richard Howson, the former chief executive turned chief operating officer, among those to leave.
These latest losses are due to a series of restructuring charges, according to a report posted to the London Stock Exchange.
This included a write-down of £845 million related to support services contracts and a goodwill impairment charge of £134 million linked to construction activities in the UK and Canada.
It has also made a fresh £200 million provision for support services contracts.