BENGALURU: British construction and support services group Carillion said on Friday it expects full-year results to be lower than market forecasts, as it booked a further provision relating to services contracts.
“This is a disappointing set of results which reflects the issues we flagged in July and the additional 200 million pound provision for our Support Services business that we have announced today. We now expect results for the full year to be lower than current market expectations,” Keith Cochrane, Interim Chief Executive, said in a statement
Carillion, whose shares have lost two-thirds of their value since it announced a writedown in mid-July, said it was in talks to sell its Canadian and UK health care businesses and intended to raise £300 million (SR1.5 billion) from disposals, up from a previous target of £125 million.
The company said its board is considering other options, including raising equity to repair and strengthen its balance sheet.BENGALURU: Carillion is exploring options including a share issue to shore up the balance sheet, the British construction and support services group said on Friday, as it warned that full-year results would be lower than market expectations.
The company, whose shares have lost two-thirds of their value since it announced a writedown on July 10, booked a further 200 million pound provision relating to services contracts, following a review of its entire business.
“While self-help measures will lead to a material reduction in our average net debt, these along will not be enough to achieve our target,” the group said in a statement.
“The board is therefore considering other available options, including raising equity to repair and strengthen the balance sheet in due course,” it added.
Carillion booked an £845 million (SR4.25 billion)writedown on problematic construction contracts in July, prompting the departure of is chief executive.
Analysts have said they expect Carillion to have to raise new funds to shore up its balance sheet, although uncertainty over its contracts, its debt position and its pensions obligations have raised questions over the value of the company.
“We believe that the business could have an enterprise value of 1.6 billion pounds,” Liberum analysts wrote in a client note.
Shares in Carillion rose this week after a newspaper reported that a Middle Eastern buyer was considering a bid.
Carillion said on Friday that its 2017 revenue was expected to be between £4.6 billion and £4.8 billion, down from a previous expectation of £4.8 billion to £5 billion.
Full-year average net debt was expected to be between £825 million and £850 million, it said, as it announced measures to boost its balance sheet including raising £300 million from asset disposals and an £80 million reduction in its pension deficit.
Carillion said on September 11. that its chief financial officer Zafar Khan was leaving and would be replaced by Emma Mercer, the finance head of its UK construction business.
UK contractor Carillion warns on full-year results, makes further provision
UK contractor Carillion warns on full-year results, makes further provision
Saudi POS spending rises 4.5% to $3.8bn in late February: SAMA
RIYADH: Saudi Arabia’s point-of-sale spending rose 4.5 percent to SR14.5 billion ($3.8 billion) in the week ending Feb. 28, even as the number of transactions declined.
According to the latest data from the Saudi Central Bank, also known as SAMA, the total number of transactions fell 4.6 percent to 210.53 million during the period.
Freight transport and postal services recorded the largest jump, surging 50.4 percent to SR121.35 million. Apparel and clothing followed with a 44.2 percent gain to SR1.9 billion.
Personal care transactions grew 21.7 percent, while books and stationery advanced 8.3 percent. Hotel receipts also increased 11.1 percent to SR376.26 million.
Pharmacies and medical supplies registered a 23.5 percent rise to SR254.51 million, while medical services edged up 10.2 percent to SR531.56 million.
Food and beverage purchases declined 11.4 percent to SR2.33 billion, though the segment still accounted for the largest share of POS activity. Restaurants and cafes followed with a 1.8 percent drop to SR1.22 billion.
The Kingdom’s key urban centers reflected the broader trend. Riyadh, which accounted for the largest share of POS activity, recorded a 2.5 percent increase to SR4.86 billion, compared with SR4.75 billion the previous week. Transactions in the capital totaled 65.7 million, down 5.9 percent week on week.
In Jeddah, transaction values climbed 5.6 percent to SR2 billion, while Dammam posted a 1.6 percent uptick to SR689 million.
Weekly POS figures tracked by SAMA offer insight into consumer behavior and the continued expansion of digital payments across Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with Saudi Arabia’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.
