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Carillion partners and suppliers count cost of collapse

Companies working on Carillion projects and suppliers of failed firm outline the cost from its collapse.

 
Carillion partners and suppliers count cost of collapse
 

The collapse of Carillion has continued to take its toll on companies with exposure to the failed infrastructure group, as they outline the hit they are expected to take.

Shares in Alternative Investment Market stock Van Elle (VANL) fell 6.4% to 89.9p as the ground engineering group said it was owed £1.6 million for several projects in had undertaken for Carillion in December.

Van Elle said it would engage with Carillion and its official receiver but warned that 'in the event that Van Elle is unable to recover any monies owed, there would be an adverse impact on the group'.

The group added that further expected work with Carillion represented around £2.5 million of anticipated revenue for the second half of its financial year.

Van Elle has been working with Carillion mainly on rail improvement and maintenance services for Network Rail.

'While it is disappointing to note the Carillion announcement we continue to develop further our strong relationship with Network Rail and its principal contractors.'

Meanwhile Speedy Hire (SDY), whose shares fell 5.7% yesterday on fears over the loss of one of its biggest customers, revealed it was owed £2 million by Carillion and its joint ventures at the end of December.

The tool hire group said in a statement released just before yesterday's market close that revenue relating to Carillion for the 12 months to the end of December was around £12 million.

'The impact of Carillion's situation is not expected to be material to the group which had net debt at 31 December 2017 of £88.9 million,' it said. Shares in Speedy Hire edged half a penny higher to 57.3p today.

Niche specialist services provider Premier Technical Services (PTSG) said annual revenue from work undertaken for Carillion were around £800,000 and that it was owed £300,000 from the group.

'It is expected that this work will be taken on by existing PTSG clients, therefore the ongoing effect on the group is minimal,' it said.

Investors focused instead on the news full-year results would beat market expectations, sending the shares 13.4% higher at 195p.

Building services group T Clarke (CTO), a sub contractor on Carillion's Aspire joint venture defence project, said it had been advised of a 'business as usual' transition for the contract.

With exposure of less than £100,000 to Carillion through its other activities, T Clarke said it did not expect 'any adverse financial impact on the group arising from any direct exposure to Carillion'.

After yesterday's 2.7% fall, the shares were broadly flat at 85.8p today.

Shares in Morgan Sindall (MGNS) meanwhile jumped 5.9% to £13.92, reversing yesterday's fall in after-hours trading.

The construction group, which is working on a number of projects and joint ventures with Carillion, said yesterday the impact of the group's liquidation was 'not expected to be material on the group'.

Infrastructure investment trusts have also been outlining the contingency plans in place for Carillion projects in stock market updates.

 

1 comment so far. Why not have your say?

Rob Walker

Jan 16, 2018 at 21:19

It would be interesting to see if any of our 'trusted' share tippers recommended any of the above in the last month. Certainly Galliford Try got the hard sell from one or two tipsters. Now, I know hindsight is a wonderful thing, but don't you think the ';experts' would have seen the fallout from the Carillion crash coming along? Or, maybe maintaining the share price of some of these 'partners' was part of a cunning plan?

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