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Pin to quick picksCarillion Plc Share News (CLLN)

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UPDATE 2-Carillion sees slowdown in pace of new orders post-Brexit

Wed, 07th Dec 2016 11:06

* Spending delay by UK government after Brexit vote

* Conditions in Middle East expected to remain challenging

* 2017 revenue order visibility 70 pct

* Shares down 4.4 pct, 2nd top FTSE midcap loser (Adds CEO, analyst comments, details, share movement)

By Esha Vaish

Dec 7 (Reuters) - Carillion Plc, a British buildingsupport services company, said the pace of new order intake hadslowed in the second half of the year, partly due to a spendingdelay by the government following Britain's vote to leave theEuropean Union.

The company, which maintains railways, roads and militarybases, had seen some slowdown in the UK either releasingcontracts to the market or awarding contracts that had been bidon, Chief Executive Richard Howson told Reuters.

Although most UK construction and support services managedto avoid an immediate post-Brexit hit as many had forecast,recent warnings from Capita and Mitie havehighlighted that Brexit uncertainty has caused customers todelay decisions.

Carillion said on Wednesday it had won orders and probableorders worth about 2 billion pounds ($2.5 billion) in the sixmonths ending Dec. 31, compared with 2.5 billion pounds in thepreceding six months.

The company partly blamed a slower pace of contract awardsfrom the Middle East, particularly in Oman, as the regiongrapples with low oil prices. Howson said the conditions in theregion were expected to remain challenging.

Carillion stock was down 4.4 percent at 245 pence by 1101GMT, making it the second top FTSE midcap loser. It wasalso the most shorted stock across the FTSE 350.

The company, which has been increasing its exposure tosupport services work, said it expected to match expectations of2016 pretax profit of about 180 million pounds, which wouldrepresent a roughly 16 percent year-on-year increase.

"Numbers to be characterised by strong revenue growth butmargin down slightly overall," N+1 Singer analysts wrote.

"Overall, no reason to get involved here and much betterways to play UK infrastructure spend," they added, pointing topeers such as Balfour Beatty, Costain andMorgan Sindall.

Carillion forecast a total and probable orders pipeline ofabout 16 billion pounds by the year end, lower than the 17.4billion pounds it had forecast by the end of June.

Order visibility for 2017 revenue stood at about 70 percent,lower than the 84 percent visibility it had reported last yearfor 2016 revenues.

However, Howson said he expected Britain's divorce from theEU to stimulate government spending, with Britain havingpromised an extra 23 billion pounds of infrastructure investmentover the next five years.

"Over the next 3-7 years the big opportunities are in UKinfrastructure as the country... prepares itself to compete froma different base from other European countries," Howson said. "Ican see some of those bids now starting to come into ourpipeline." ($1 = 0.7916 pounds) (Reporting by Esha Vaish in Bengaluru. Editing by Jane Merrimanand Susan Thomas)

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3 Feb 2022 15:24

UPDATE 3-KPMG sued for $1.8 bln over Carillion audits

* KPMG missed "red flags" in Carillion audits - lawsuit* KPMG was "in wholesale breach of obligation as auditor" - claim* KPMG says Carillion board, management to blame for failure* Claim is without merit - KPMG (Adds details, background)By Kirstin...

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3 Feb 2022 15:24

UPDATE 2-KPMG sued for $1.8 bln over Carillion audit

(Adds details)By Kirstin RidleyLONDON, Feb 3 (Reuters) - A British government receiver is suing KPMG for 1.3 billion pounds ($1.77 billion) over alleged negligence during its audit of collapsed construction giant Carillion, in one of the largest c...

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19 Jan 2022 08:30

UPDATE 1-KPMG fined $5.8 million over "Bargain Booze" audits in Britain

(Adds more detail)By Huw JonesLONDON, Jan 19 (Reuters) - Britain's accounting watchdog on Wednesday fined KPMG 4.3 million pounds ($5.85 million) for audits of drinks store chain Conviviality, whose brands included Bargain Booze and Wine Rack, bef...

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18 Jan 2022 17:37

UK watchdog fines former KPMG accountant for misconduct

By Huw JonesLONDON, Jan 18 (Reuters) - Britain's accounting watchdog said on Tuesday that KPMG and one of its former employees have admitted misconduct during the regulator's spot checks on an audit of software company Regenersis in 2015.The Finan...

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10 Jan 2022 17:22

KPMG admits to misconduct in spot checks on Carillion, Regenersis audits

By Huw JonesLONDON, Jan 10 (Reuters) - KPMG admitted to misconduct on Monday in misleading regulators during spot checks of its audits of builder Carillion and software company Regenersis.The admission came as a tribunal began hearing allegations ...

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16 Nov 2021 00:01

UK watchdog rams home good audit practice after company collapses

By Huw JonesLONDON, Nov 16 (Reuters) - Britain's accounting watchdog published on Tuesday what it believes to be the world's first regulatory guide to what makes a good audit, to help stem company collapses and continued compliance failings.It is ...

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1 Nov 2021 10:17

UK watchdog fines Grant Thornton $1.8 million for Interserve audits

By Huw JonesLONDON, Nov 1 (Reuters) - Britain's accounting watchdog fined Grant Thornton 1.3 million pounds ($1.77 million) on Monday for "failings" in its auditing of now collapsed outsourcer Interserve - its second fine from the regulator in fi...

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13 Oct 2021 09:07

UPDATE 2-KPMG was 'untruthful' in defence against Silentnight fine, UK tribunal says

* KPMG accused of 'burning platform' strategy* KPMG says accepts findings from tribunal* FRC says untruths undermine regulatory system* KPMG still faces outcome of Carillion investigation (Adds more detail)By Huw JonesLONDON, Oct 13 (Reuters) - KPMG...

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13 Oct 2021 09:07

UPDATE 1-KPMG was 'untruthful' in defence against Silentnight fine, UK tribunal says

(Adds more detail, KPMG comment)By Huw JonesLONDON, Oct 13 (Reuters) - KPMG mounted an "untruthful" defence when it sought to reduce a fine imposed for its conflict of interest during the sale of British bed manufacturer Silentnight in 2011, Brita...

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11 Oct 2021 11:59

Britain likely to adopt Sarbanes-Oxley style audit rules in some form, says regulator

By Huw JonesLONDON, Oct 11 (Reuters) - Britain is likely to adopt landmark U.S.-style safeguards on financial reporting in some form even if the government shies away from legislation, the UK's accounting watchdog said on Monday.The government wil...

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1 Sep 2021 08:42

KPMG faces complaint of providing 'false' information on Carillion audit

By Huw JonesLONDON, Sept 1 (Reuters) - KPMG allegedly provided "false and misleading" information about its audits of collapsed builder Carillion and data erasure company Regenersis for regulatory checks, Britain's accounting watchdog said on Wed...

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7 Jul 2021 17:22

Britain's bosses: Delay 'step into the unknown' audit reform

By Huw JonesLONDON, July 7 (Reuters) - Britain's bosses have called on the government to delay its "step into the unknown" of forcing companies to hire two auditors to improve standards and competition after a string of corporate failures.After th...

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21 Jun 2021 17:06

KPMG faces call for record fine from British accounting watchdog

By Huw JonesLONDON, June 21 (Reuters) - Britain's accounting watchdog called for KPMG's UK arm to be fined more than 15 million pounds ($21 million) on Monday over a 'conflict of interest' when it advised on the sale of bed maker Silentnight.KPMG,...

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27 May 2021 08:31

UK accounting watchdog tightens fraud prevention guidelines

LONDON, May 27 (Reuters) - Britain's accounting watchdog on Thursday tightened fraud prevention standards in the wake of sharp criticism by parliamentarians after the high-profile collapses of companies such as retailer BHS and builder Carillion....

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12 Apr 2021 12:37

Holt to head KPMG's UK arm ahead of Carillion probe outcome

LONDON, April 12 (Reuters) - Global accountants KPMG said on Monday that Jon Holt has been elected by partners to head its 2.3 billion pound ($3.17 billion) UK arm, which faces a potential fine and major industry reform.Holt, head of audit since 2...

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