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.
UK regulator investigating Carillion statements
UK regulator investigating Carillion statements
Closing Bell: Saudi main index climbs to 10,485
RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Sunday, gaining 34.32 points, or 0.33 percent, to close at 10,484.59.
The total trading turnover of the benchmark index stood at SR2.59 billion ($690 million), with 168 listed stocks advancing and 87 declining.
The Kingdom’s parallel market Nomu also gained 100.37 points to close at 23,454.65.
The MSCI Tadawul Index advanced by 0.13 points to 1,377.44.
The best-performing stock on the main market was Nama Chemicals Co., whose share price increased by 9.98 percent to SR22.38.
The share price of Al Masar Al Shamil Education Co. rose by 9.15 percent to SR23.85.
Saudi Paper Manufacturing Co. also saw its stock price climb by 8.42 percent to SR57.95.
Conversely, the share price of Canadian Medical Center Co. dropped by 6.37 percent to SR6.03.
The stock price of Kingdom Holding Co. also declined by 3.16 percent to SR8.28.
In the parallel market, Alfakhera for Mens Tailoring Co. was the top performer, with its share price advancing by 16.40 percent to SR8.80.
On the announcements front, Theeb Rent a Car Co. said it had signed a long-term vehicle leasing services contract valued at SR110.4 million with Hungerstation Co.
Under the deal, Theeb will lease 2,000 vehicles to HungerStation for a period of four years starting from 2026, according to a Tadawul statement.
The statement added that the vehicles will be delivered in batches within the first six months from the contract start date, taking into consideration global logistical circumstances and procedures beyond the control of both the agents and the company.
The contract is expected to have a positive impact on the company’s financials from the first quarter of 2026.
The share price of Theeb Rent a Car Co. declined by 0.79 percent to SR37.80.
