Home > Uncategorized > Carillion and construction in trouble?

Carillion and construction in trouble?

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Notorious amongst subcontractors for their extremely tardy payments, Carillion look like they might be needing to hold onto all the cash they can.

Nicholas Hyett, equity analyst, at stockbrokers Hargreaves Lansdown, said: “Carillion looks like it’s trying to bail out a supertanker with a soup spoon. Despite the group’s best efforts debt is continuing to climb, and at an increasing rate, while the construction business seems to be hitting one hurdle after another.

Their shares have just crashed by 40% and whilst there is no immeidate indication that they are in serious trouble, the above analysis will cause alarm

The Commercial mortgage market has seemingly been sluggish for some time giving an indication that the banks are being negative about the whole property sector. Maybe Carillion is an exception and it would appear that their woes have been partly in the Middle East and maybe the blaming of Brexit uncertaintly is simply the usual current reflex. On the other hand this could also be a precursor of some difficult times ahead for what is always a volatile sector

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