FCA: Investigation into Carillion's announcements begins

5 January 2018

Editor

EU regulation

Support services company, Carillion, which has been suffering from financial difficulties in recent months, announced that the Financial Conduct Authority (FCA) has notified the company that has commenced an investigation. This is in connection with the timeliness and content of announcements made by Carillion between 7th December 2016 and 10th July 2017. 

The company issued an update on trading in 2016 on 7th December 2016 ahead of announcing its preliminary results on 1 March 2017. At that time the company said it expected its performance to meet expectations and for its net borrowing level to reduce. When it announced its full-year results the message from the company continued to be upbeat and this positive message was repeated by the then chief executive, Richard Howson, at its AGM in May.

However, the company issued a trading statement on 10th July in the company stated that debt levels had in fact risen.  Carillion stated then that there had been a deterioration in cash flows on construction contracts, combined with a working capital outflow due to a higher than a normal number of construction contracts being completed without new contracts being started.

Howson resigned in July and was replaced by Keith Cochrane, previously its senior independent non-executive director. Since then Andrew Davies has been appointed and he is due to start in his post later this month. Cohrane is to remain with Carillion in an advisory capacity in order to ensure an orderly transition. Davies was previously chief executive of Wates Group and had held senior positions at BAE Systems prior to this.

Recently the company has raised cash by selling a number of its businesses including the recent disposal of its healthcare facilities management business to Serco. It has also been engaged with stakeholders over its debt. In November it announced it would have to defer the test date for both its financial covenants from 31 December 2017 to 30 April 2018, by which time it expected to be implementing its recapitalisation plan.

Carillion said it is cooperating fully with the FCA investigation.

Latest News

SHareholder meeting

Disney and ABC sue US FCC over alleged regulatory retaliation

SHareholder meeting

Proxy advisor sues Oklahoma over HB 4429 as legal pressure on voting restrictions mounts

SHareholder meeting

SEC axes Rule 14a-8 ‘no action’ process for shareholder proposals

SHareholder meeting

Investors urge SEC to reject Texas Stock Exchange voting rule

SHareholder meeting

Wise faces shareholder lawsuit soon after controversial US shift

SHareholder meeting

Anthropic investors call for U$2 trillion IPO valuation

Featured Briefings

Minerva Briefing

Virtual-Only AGMs

Minerva Briefing

UK Proxy Season Review 2026

Minerva Briefing

Australia Proxy Season Review 2025

Minerva is a global provider of sustainable stewardship solutions with over 30 years of expertise. Minerva empowers investors by providing essential tools, including ESG research and data and expert insights, enabling them to navigate the intricate and ever-evolving landscape of stewardship and proxy voting, whilst ensuring their decisions are well-informed and aligned with sustainable principles.

Related Stories

Science Based Targets initiative 2.0

SBTi 2.0: From Targets to Disclosure, and What it Means for Investors

June 18, 2026
Read More

Consultation Showcases Support for UK Voluntary Sustainability Disclosure

February 3, 2026
Read More

AI Answerability: US Bipartisan Bill Targets Corporate Job Loss Disclosure

November 18, 2025

Jack Grogan-Fenn

Read More

Streamlining Sustainability: UK FCA Moves to “Simplify” Disclosure Requirements

August 13, 2025

Jack Grogan-Fenn

Read More

GRI Introduces Revised Disclosures for Labour-Related Standards

June 13, 2024

Elizabeth Pfeuti

Read More

Lawsuit filed against California’s disclosure rules

February 7, 2024

Elizabeth Pfeuti

Read More