logo-loader
FinanceReal Estate
Carillion

Carillion creeps higher as HSBC parachuted in ahead of possible £500mln fundraise

Carillion shares were in freefall at the start of the week after it issued a shock profit warning

battersea power station construction work
Carillion is currently working on the redevelopment of the iconic Battersea power station

Shares in Carillion PLC (LON:CLLN) edged higher this morning after the beleaguered construction services group brought HSBC on board as its joint financial adviser and corporate broker as it looks to dig itself of the whole it fell in earlier this week.

On Monday, Carillion’s chief executive Richard Howson walked the plank after revealing that full-year revenues would be lower than expected.

WATCH: Carillion 'dragged through a hedge fund backwards'

Shares plummeted in response to the shock profit warning and the FTSE 250-listed company has seen the best part of £600mln wiped off of its market value this week.

The hiring of HSBC comes as speculation mounts that Carillion will need to raise a significant amount of money to help its rebuild, while the sale of its construction business has also been mooted.

Only yesterday, JP Morgan analyst Samuel Bland suggested that the firm probably needs to raise around £532mln in the near future, a view echoed by Jefferies’ Sam Cullen.

“Realistically, we see no future for Carillion without a rights issue of at least £500mln as we believe the group will find it increasingly difficult to win support services work with the balance sheet in its current state,” wrote Cullen in a research note.

Carillion shares added 4% to 58p on Friday.

--Updates for share price and video link--

Quick facts: Carillion

Price: £0.14

Market: LSE
Market Cap: £61.1 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: hVIVO PLC's 2020 pipeline 'looking strong' as it expands...

hVIVO PLC's (LON:HVO) executive chairman Trevor Phillips tells Proactive London's Andrew Scott the business is now better positioned to be profitable next year. The creator of pioneering human disease models based upon viral challenge generated revenues of £5.9mln in the six months ended June...

17 hours ago

2 min read