Sunday, September 19, 2021

Carillion CEO steps down after shares crash

Carillion shares crashed by 40% after the company revealed lower than expected operating profits for the first half of 2017 and and a deterioration in cash flows on a number of construction contracts.

As a result, the board has announced intentions to ‘undertake a comprehensive review of the business’ and ‘significant actions to reposition the business’.

Philip Green, Non-Executive Chairman of Carillion says: “Richard Howson has stepped down as Group Chief Executive and from the board with immediate effect.

“Keith Cochrane, previously our senior independent non-executive director, will take over as interim Group Chief Executive, while a search is underway for a new Group Chief Executive.

“We are fortunate to have had Keith as a non-executive member of our board as he has considerable plc CEO experience.

“Richard will stay with the group for up to one year to support the transition.”

He adds: “Despite making progress against the strategic priorities we set out in our 2016 results announcement in March, average net borrowing has increased above the level we expected.

“That means we will no longer be able to meet our target of reducing leverage for the full year.

“We have therefore concluded we must take immediate action to accelerate the reduction in average net borrowing and are announcing a comprehensive programme of measures to address that, aimed at generating significant cashflow in the short-term.

“In addition, we are also announcing that we are undertaking a thorough review of the business and the capital structure, and the options available to optimise value for the benefit of shareholders.

“We will update the market on the progress of the review at our interim results in September.”


A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemic having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.

Latest news

Related news

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.