Carillion
| Carillion | |
|---|---|
| legal form | Public limited company |
| ISIN | GB0007365546 |
| founding | 1999 |
| Seat |
Wolverhampton , West Midlands , United Kingdom
|
| management |
|
| Number of employees | 46,000 (2017) |
| sales | 5.2 billion £ (2016) |
| Branch | Construction company |
| Website | www.carillionplc.com |
Carillion is an internationally active, listed British construction company and facility management provider based in Wolverhampton .
The group ran into financial difficulties in 2017 and filed for bankruptcy on January 15, 2018 .
history
Carillion was created in 1999 when the Tarmac Group was broken up . The construction and facility management business areas were spun off and a new name was chosen in order to lose the association with pure road construction projects. Neville Simms, then CEO of Tarmac, was named Carillion's CEO in June 1999.
insolvency
In 2017, the company came under increasing economic pressure in its business areas and had to issue a profit warning to its shareholders in July . CEO Richard Howson resigned after the profit warning was announced and was replaced by Keith Cochrane. Although prestigious contracts were still being won in 2017, the group was estimated to have accumulated around £ 1.5 billion in liabilities by the end of the year . The share price plummeted from £ 2.30 to £ 0.14 in one year.
Negotiations with the lenders Royal Bank of Scotland , Santander and HSBC finally failed on the weekend before January 15, 2018. The board of directors declared on Monday, January 15, that they had no choice and that the liquidation would be initiated with immediate effect .
Since the group was involved in numerous important construction projects for the state and state agencies had entrusted Carillion with facility management tasks, some actors called for a state rescue. For example, Carillion supplied school lunches and organized cleaning of the buildings for almost 900 schools in the UK. In addition, there was the management of almost 12,000 hospital beds in the state's National Health Service , the operation of around 50,000 apartments on military bases and tasks in the operation of prisons.
Carillion had subcontracted most of the work on assignments . The group also set the deadline for paying its invoices to small suppliers at 120 days last year. When the insolvency became known, observers expected severe financial losses for the subcontractors. An association representative was quoted with a statement that the subcontractors would ultimately have to bear the bulk of the losses. On January 15, the government pledged that it would continue to pay the subcontractors who were working on contracts awarded to Carillion by the state.
Web links
- Official website of Carillion
Individual evidence
- ↑ a b c d Josie Cox: "Carillion: Government contractor enters compulsory liquidation 'with immediate effect'" The Independent of January 15, 2018
- ↑ Carillion: Group Report 2016 ( Memento of the original from January 15, 2018 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ^ "Business: The Company File - Tarmac to split in two" BBC of March 16, 1999
- ↑ a b "Tarmac spins off construction arm as Carillion" The Independent of June 13, 1999
- ^ "Britain's Carillion CEO quits as company issues warning" Reuters, July 10, 2017
- ↑ Joe Watts: "Carillion bosses face inquiry after protecting 'exorbitant' £ 4m bonuses ahead of collapse" The Independent, January 15, 2018
- ^ Russell Hotten: "Carillion: Small firms' support ends in 48 hours" BBC January 16, 2018
