November 17, 2017 / 7:28 AM / a year ago

Debt-laden Carillion warns on profit, covenant

Nov 17 (Reuters) - British builder Carillion issued its third profit warning this year and said it would breach its financial covenant.

“A combination of delays to certain PPP (Public–Private Partnership) disposals, a slippage in the commencement date of a significant project in the Middle East and lower-than-expected margin improvements across a small number of UK Support Services contracts....will lead to profits for the year being materially lower than current market expectations,” Carillion said in a statement.

It also said it expects average net borrowing in 2017 to be 875-925 million pounds and that this coupled with the latest forecasts would mean a covenant breach as of Dec. 31.

Reporting by Noor Zainab Hussain in Bengaluru; editing by Jason Neely

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