Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Carillion drops out of the FTSE 250

Troubled Carillion has fallen out of the FTSE 250 index as its share price remains in the doldrums. 

The Wolverhampton-based firm has seen its share price tumble after a major profit warning last month off the back of an £845m writedown due to problem contracts.  

At close yesterday, Carillion’s shares were worth around 45.5p – 76 per cent below where they were prior to last month’s profit warning. The firm’s market cap has slid to around £200m. 

In its quarterly review of FTSE constituents, FTSE Russell confirmed that Carillion is being demoted to the FTSE Small Cap index. 

Meanwhile housebuilder Berkeley Group is rejoining the FTSE 100 after dropping out of the top index a year ago.

The changes will officially take effect on 18 September.  

Carillion announced last week it will report its delayed half-year results on 29 September, as it works on a strategic review of the business.

The UK’s second-largest contractor has brought in accountancy giant EY to examine cost reduction and cash collection as part of the review.

Analysts Applied Value said this delay “tells us that management is allowing itself maximum time, which is not helpful for impatient capital”.

Earlier this month Construction News revealed that Richard Howson, who stepped down as chief executive following the profit warning, had moved back into his previous role of Carillion’s chief operating officer, but will still leave the firm within the next 12 months. 

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.