There was more bad news for investors in Carillion (CLLN) last week, after the company took further provisions and warned that adjusted pre-tax profit would be down 40 per cent due to contracts trading at zero margin and the phasing of public-private partnership equity disposals. The shares were down 12 per cent in early trading on the day.
IC TIP:
Sell
at
47p
The construction and support services company also completed its contract review, which led to a £200m provision being taken against support services contracts. The £845m taken against construction contracts remains unchanged. It is planning to offload a number of its non-core businesses, which is expected to bring in £300m in proceeds, up from £125m previously forecast.
