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.