Carillion appoints strategic review adviser

17 July 2017 Support services group Carillion has appointed another adviser as part of its strategic review to reduce net borrowing and improve profits.

The company has appointed EY with immediate effect to focus on cashflow generation for the short term, as well as a reduction in average net borrowing.

Interim chief executive Keith Cochrane said: "We need to simplify the business and demonstrate that value can again be created for shareholders by focusing the group on its core markets, including infrastructure and property services, in which it has good strengths and leading positions."      

The moves comes only a few days after Carillion appointed HSBC to overhaul its finances after a recent profit warning sent its shares into freefall.

The company announced its pull-out from construction PPPs as well as construction markets in Qatar, Saudi Arabia and Egypt.

"We are moving forward quickly with the actions outlined last week. Alongside our own efforts, EY will provide support across the business and bring an external perspective to our cost reduction and cash collection challenge. My priorities are to reduce the group's net debt and create a balance sheet that will support Carillion going forward,” Cochrane said.

Meanwhile, Carillion has secured the HS2 contract to deliver two sections of high-speed rail line from London to Birmingham. The announcement offered some respite for Carillion’s share price, with a peak of £0.7 compared to a record low of £0.54 last Thursday.

This page was last updated on:
21 January 2018.

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