Engineer Van Elle in warning over Carillion

Engineering firm Van Elle warned yesterday over a potential £1.6 million hit if it fails to claw back payments owed by collapsed construction giant Carillion.

The group has launched talks with Carillion, its advisers and the Official Receiver, which is leading the liquidation, but said it was braced for a possible “adverse financial impact”.

It also highlighted a further £2.5m worth of revenue linked to contracts with Carillion in the second half of the financial year, but said it was “too early to say” what impact the firm’s demise would have on that work.

Van Elle worked with Carillion on various contracts, mainly to do rail improvement work for Network Rail.

Separately, John Laing Infrastructure Fund said it was rolling nine Carillion projects onto new providers as it activated contingency plans. It said it should not suffer any material impact from the collapse.