UK regulator investigating Carillion statements

Carillion shares have lost 90 percent of their value since the profit warning on July 10. The building and services company’s market capitalization stands at about £70 million, according to Thomson Reuters data. (Reuters)
Updated 03 January 2018
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UK regulator investigating Carillion statements

BENGALURU: Britain’s Financial Conduct Authority (FCA) is investigating statements made by Carillion over seven months up to and including a profit warning last July, the struggling building and services company said on Wednesday.
Carillion, which is involved in major infrastructure projects for the British and other governments, has been fighting for its survival after costly contract delays and a downturn in new business. In November it issued its third profit warning in five months.
The investigation by the markets watchdog concerns “the timeliness and content of announcements made by Carillion between December 7, 2016 and July 10, 2017,” the company said in a brief statement to the London Stock Exchange.
Carillion said it was cooperating fully with the FCA.
In the period under review, Carillion released a full-year trading update, its 2016 results, an annual general meeting statement and a 2017 first-half trading update. Its shares fell more than 54 percent over the seven months.
The company announced on July 10 it would undertake a review of its business, suspended its dividend, announced divestments and said it expected overall performance to be below management’s previous expectations.
Carillion also said then that Richard Howson would step down as chief executive and named Keith Cochrane as interim CEO.
Analysts estimate the company is also grappling with debt including provisions, pensions and accounts payable of about £1.5 billion (SR7.55 billion).
Carillion shares have lost 90 percent of their value since the profit warning on July 10. Carillion’s market capitalization stands at about £70 million, according to Thomson Reuters data.
Carillion and FCA declined to provide any additional details on the investigation.
Carillion last month moved forward the start date for new chief executive Andrew Davies forward to January 22 from April 2.
Davies, head of family-owned builder Wates Group and formerly with defense company BAE Systems, will replace interim CEO Cochrane.


Hundreds march in Berlin to demand an end to using coal

Updated 24 June 2018
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Hundreds march in Berlin to demand an end to using coal

  • Germany has invested a lot in renewable energy but still heavily relies on coal
  • About 22 percent of Germany’s electricity still comes from burning soft lignite coal

BERLIN: Hundreds of protesters are marching through the German capital to demand an end to burning coal to produce electricity.
The demonstrators — many of them families pushing strollers, people on bikes and samba bands — walked through the Berlin’s government district on Sunday, ahead of next week’s first meeting of Germany’s commission on exiting coal use.
Germany has invested a lot in renewable energy but still heavily relies on coal, which creates harmful carbon emissions when burnt. About 22 percent of Germany’s electricity still comes from burning soft lignite coal — and a further 12 percent from hard coal — while some 33 percent is now generated using renewable energy.
Last week, Germany’s environment minister said the country will likely miss its goal of cutting emissions by 40 percent by 2020.