In­fra­struc­ture gi­ant posts £1bn in half year losses

Birmingham Post - - THE WEEK IN BUSINESS -

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.

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