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News » UK » Carillion loses 70% of its market value » published 12 Jul 2017

Carillion loses 70% of its market value

Carillion’s share price continued to slide this week following last week’s profits warning and the ousting of the chief executive.

At the midweek point, Carillion's value had fallen 70% since Friday's profits warning.

Carillion’s share price collapsed from 192p to 120p on Friday 7th July in the wake of a shock announcement that it was loading £845m of contract provisions onto its books and chief executive Richard Howson had stepped down.

After three days of trading on the London Stock Exchange this week, stability has yet to return. Carillion’s share price closed at 111.8p on Monday, 78.65 on Tuesday and sank to 58p by mid afternoon on Wednesday before rallying a little to 62p with some hoping the bottom had been reached. It ended Wednesday at 57p and market capitalisation reduced to just £246m.

Analysts at RBC Capital Markets and elsewhere expect Carillion to need a rights issue to steady the ship and possibly an exit from construction altogether. The Carillion board said that all options were under consideration, as it launched a comprehensive review of the business and capital structure.

 

 

MPU

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This article was published on 12 Jul 2017 (last updated on 13 Jul 2017).

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