Carillion shares recover after fall to record low
Shares in Wolverhampton-based construction and support services group Carillion recovered today after they dipped to a record low on Wednesday,
The company's failure to deliver half year results saw the share price drop 11.4 per cent to 42.6p giving a market capitalisation of £183 million.
It was named as main contractor on a £300m Manchester property development this morning and shares rose by more than seven per cent to 45.9p in trading.
Carillion's shares had slumped after it warned on profits due to problems with construction contracts last month. It lost nearly 80 per cent of its market value.
The award of the contract from Ask Real Estate for the development, which will include a hotel and offices built on a 1.74 acre former car showroom site next to Manchester Central Convention Centre and the Hilton Tower was seen as a vote of confidence from contractors and customers in Carillion's ability to deliver on projects.
Carillion will now release its half year results on September 29.
It confirmed that the company was the main contractor on the Manchester project, but declined to give further details.
Under the contract, Carillion and Ask will work with Transport for Greater Manchester, Manchester City Council and Manchester Central.
Carillion, which is the second largest contractor for the British Government, has won several public contracts since its July profit warning, including work worth £1.4 billion to help to build Britain's HS2 railway.
The fall in the share price on Wednesday came as concern deepened that the group was struggling to put together a rescue refinancing.
There was more good news for Carillion this afternoon as it was presented with the Queen's Award for sustainable development by the Lord Lieutenant of the West Midlands John Crabtree.
The presentation was taking place at the Midland Metropolitan Hospital construction site in Smethwick.
The Wolverhampton-based business was one of 176 award winners revealed on Her Majesty the Queen's 91st birthday, and just one of 11 recipients in the sustainable development category.
Carillion, which will be able to use the Queen's Awards emblem for the next five years, employs around 400 people at its city centre headquarters in Wolverhampton and 48,000 across the UK, the Middle East and Canada.
