Carillion has seen its share price crash by more than 10 per cent in morning trading as the troubled firm works on a strategic review.
Shares in the Wolverhampton-based company dropped to a new low of 41.47p this morning, but have since recovered slightly to 42.85p. This time last year the group’s share price stood at 296p.
Carillion announced yesterday it will report its delayed half-year results on 29 September, as it works on an overhaul helped by accountancy giant EY.
Analysts Applied Value said this delay “tells us that management is allowing itself maximum time, which is not helpful for impatient capital”.
It continued: “It is probably inevitable however if the company is to provide a comprehensive set of answers.”
Last month Carillion issued a profit warning and suspended its dividend after revealing an £845m writedown on problem contracts. In the aftermath, its share price time tumbled around 70 per cent.
Chief executive Richard Howson stepped down with immediate effect.
However, Construction News revealed last week that he has now taken his old role of chief operating officer for up to a year to help collect money on problem contracts.
Despite the firm’s woes, Applied Value said today it believed Carillion can recover.
“We remain confident that a solution will be found as stakeholders recognise that the best solution is Carillion’s survival and that some compromises are inevitable as recognising the financial issues was delayed for far too long by the previous FD,” it said in a note.
Balfour Beatty boss Leo Quinn told Construction News last week that he expected Carillion to emerge a “better” but potentially smaller company.