One British Company Saw 70% of Its Value Vanish This Week

Published in

In 2014, U.K. builder Carillion Plc was riding high: it had just won a $434 million contract to build the Royal Liverpool Hospital and was attempting to snap up its struggling rival Balfour Beatty Plc for about $2.6 billion, Bloomberg News reported. Three years later, and the former Tarmac business is on life support. Carillion has lost 70 percent of its market value this week after flagging 845 million pounds ($1.09 billion) in surprise contract provisions. In an emergency move, it installed non-executive director Keith Cochrane as interim chief executive, and called in KPMG to help review its books and balance sheet, described by Liberum analyst Joe Brent as “a mess.” The Wolverhampton-based construction company announced on Friday it has added HSBC to its ranks of financial advisers, working alongside Morgan Stanley, Lazard and Stifel to draw up a rescue plan. Although the ex-CEO of Scottish engineering firm Weir Group Plc has already said he’s considering “all options” for Carillion, analysts are struggling to see them and the specter of Brexit is an unwelcome backdrop as the pace of new work slows. Read more.