Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  Carillion    CLLN   GB0007365546

CARILLION (CLLN)
Mes dernières consult.
Most popular
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Interserve shares slump as firm warns on trading in Britain

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/14/2017 | 02:33pm CEST

Shares in Britain's Interserve (>> Interserve plc) crashed more than 50 percent after it warned of lower annual earnings on Thursday, showing the challenge its new boss faces at a business hit by the cost of winding up loss making waste-to-energy contracts.

Shares in Britain's Interserve (>> Interserve plc) crashed more than 50 percent after it warned of lower annual earnings on Thursday, showing the challenge its new boss faces at a business hit by the cost of winding up loss making waste-to-energy contracts.

The construction and services company said "complexities of completion" meant final costs associated with its exit from the waste-to-energy business would exceed a previous 160 million pound provision.

Interserve decided to exit the business in August 2016, after struggling with cost overruns and delays in a Glasgow contract. The company then in February more than doubled its expected charge after a review.

Many companies trying to generate energy from waste have been forced to make expensive design changes, escalating costs.

Interserve also said that trading in UK construction and support services, two parts of the business that account for 94 percent of the firm's revenue, had been worse than expected over July and August.

It had previously guided towards modest 2017 volumes growth in UK support services.

"It's not a business model crisis, it's a company crisis," said an analyst, who declined to be named.

"You can ask how strong management controls are if a company guides towards certain numbers and only realises just now that actually things aren't going well. That's not very encouraging."

New Chief Executive Debbie White, who joined this month from Sodexo (>> Sodexo), will have to work to control revenue streams and more importantly curb cost escalations to restore margins, analysts say.

The company has already suspended dividends to preserve cash, after swinging to a pre-tax loss in 2016.

Interserve, Mitie (>> MITIE Group), Capita (>> Capita) and Carillion (>> Carillion) have been hit over the past year by rising labour costs and as unplanned changes have escalated costs on past contracts.

A failure by clients to renew or commission new contracts as they grapple with Brexit uncertainty has compounded the problem, prompting warnings from Interserve's peers.

"We see no immediate read through to peers but are mindful of Interserve's response to securing new work given the recent trading and balance sheet issues... The shares may struggle for support near term," Peel Hunt analyst Andrew Nussey wrote.

Interserve shares were down 50 percent at 76.25 pence at 1210 GMT. The company lost around 120 million pounds of its market value.

(Reporting by Noor Zainab Hussain and Esha Vaish in Bengaluru; Editing by Edmund Blair/Keith Weir)

By Noor Zainab Hussain and Esha Vaish

Stocks treated in this article : Sodexo, Interserve plc, Capita, Carillion, MITIE Group
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CARILLION
09/21 Kier posts 3.5 percent rise in full-year profit
09/20 Mitie may cut 480 jobs, raises clean-up costs
09/14 Interserve shares slump as firm warns on trading in Britain
09/13 Galliford focuses on lower-risk contracts after construction hit
09/11 CARILLION : finance chief steps down in management reshuffle
09/11 CARILLION : Directorate Change
08/31 Miners help Britain's FTSE score second monthly gain
08/29 UK financial watchdog probes Mitie over timing of profit warning
08/18CARILLION PLC : half-yearly earnings release
08/16 BALFOUR BEATTY : Britain's Balfour posts 70 percent profit rise as turnaround be..
More news
News from SeekingAlpha
07/17 Dealing With The Ups And Downs Of Joel Greenblatt's Magic Formula
07/11 Carillion Plc reports 1H results
Financials ( GBP)
Sales 2017 4 739 M
EBIT 2017 197 M
Net income 2017 -359 M
Debt 2017 378 M
Yield 2017 -
P/E ratio 2017 -
P/E ratio 2018 1,97
EV / Sales 2017 0,12x
EV / Sales 2018 0,12x
Capitalization 188 M
Chart CARILLION
Duration : Period :
Carillion Technical Analysis Chart | CLLN | GB0007365546 | 4-Traders
Technical analysis trends CARILLION
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus UNDERPERFORM
Number of Analysts 11
Average target price 0,71  GBP
Spread / Average Target 63%
EPS Revisions
Managers
NameTitle
Keith Roberts Cochrane CEO & Senior Independent Non-Executive Director
Philip Nevill Green Non-Executive Chairman
Emma Mercer Chief Financial Officer
Andrew James Harrower Dougal Independent Non-Executive Director
Alison Horner Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
CARILLION-81.47%256
VINCI24.47%57 185
CHINA STATE CONST. ENG. CORP LTD9.82%44 223
CHINA COMMUNICATIONS CONSTRUCTION CO LTD11.80%33 703
CHINA RAILWAY GROUP LTD0.11%28 588
LARSEN & TOUBRO LIMITED37.45%26 797