Sellafield supplier asks HSBC to review business
Troubled construction and infrastructure giant Carillion has drafted in HSBC to help carry out a review of the business as it continues to reel from a dramatic collapse in its share price.
HSBC has been appointed joint financial adviser and corporate broker with immediate effect, Carillion said on Friday.
Carillion is a leading supplier to Sellafield and has an office in Moor Row.
The bank will help the firm with a "comprehensive review", which was announced earlier this week alongside a profit warning that saw almost £600m wiped from its value.
Shares were up over eight per cent on the news at 58p in morning trading, but still a far cry from the 191p they were trading at last week following days of stock market losses.
Carillion's market capitalisation has gone into freefall, falling from £826m to around £240m in a matter of days after it warned over earnings and revealed an £845m write-off on construction contracts.
Chief executive Richard Howson stepped down with immediate effect on Monday as the group said it would need to bolster its balance sheet and was struggling to stay within its borrowing limits.
He has been replaced by Keith Cochrane on an interim basis while a search is undertaken for a permanent boss.
Analysts at merchant bank UBS warned on Tuesday that shares could even plummet to zero if Carillion's support services trading is hit, while other experts raised worries the group may not have the funds to restructure.