The price? Job losses and debt

An EnGInEERInG sub-contractor owed £1.6million by Carillion issued a warning to shareholders yesterday.

Van Elle’s share price slumped 8 per cent when it revealed it had not been paid for December’s work with network Rail, and that it faced an ‘adverse financial impact’ if no cash was forthcoming.

The nottinghamshire-based firm was also due to carry out projects worth £2.5million for Carillion over the next year. Chief executive Jon Fenton said: ‘It is too early to say whether there will be any effect on the commencement or completion dates.’

Another small firm hit by the collapse of Carillion is Cambridge-based horticultural services company Flora-tec, which has already laid off ten staff after being left £800,000 out of pocket.

Scots managing director Andy Bradley, pictured, said the Government’s continued support for Carillion as its financial troubles deepened was an ‘absolute disgrace’, as it had encouraged small companies to believe its future was secure. Mr Bradley, originally from Clydebank, Dunbartonshire, said: ‘The Government encouraged businesses like mine to get involved in public sector contracts, to ensure the little guy got a slice of the pie.

‘When Carillion started to get into trouble last year, we were considering we would scale back our involvement with them. However, the Government gave them billion-pound contract after billion-pound contract, and that said to me, as a small supplier, that the Government had done its due diligence.

‘We were following the Government’s lead, only to be given a sucker punch.’

The owner of north London’s K&M McLoughlin Decorating claimed the collapse had cost his firm about £200,000.

Kevin McLoughlin said it was not just losing money that hurt his firm, but the loss of future contracts they had expected to receive. He added: ‘When something like this happens you lose the forward order book, and for us that could’ve been £500,000.’