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FACTBOX-A look at troubled British builder Carillion
November 17, 2017 / 2:23 PM / a month ago

FACTBOX-A look at troubled British builder Carillion

Nov 17 (Reuters) - British construction company Carillion issued its third profit warning since July on Friday, sparking a plunge in its shares after saying it would need to recapitalise.

It cited delays in selling some public–private partnerships, in the start date of a “significant” project in the Middle East and disappointing progress in improving margins on some of its UK Support Services contracts.

Following are details on the company, including its top projects:

* Carillion employs more than 30,000 people

* In 2016 it reported revenue of 5.2 billion pounds ($6.9 billion), up almost 14 pct

* In H1 2017 it made revenue of 2.5 billion pounds and a loss before tax of 1.2 billion pounds

* Has issued three profit warnings since July, with its shares plunging to lifetime lows after the latest

* Its main businesses are support services (including road maintenance and facilities management); public sector contracts (including in the defence, health and education sectors), and construction services

* Company generates most of its business in Britain but also has projects across in Canada and the MENA (Middle East and North Africa) region

* Top clients include Britain’s Ministry of Defence, Highways England, BT Plc and KBR

* On Friday, it raised its expected 2017 average net borrowing forecast to 875-925 million pounds. Analysts estimate its debt including provisions, pensions and accounts payable at about 1.5 billion pounds

* Its market value is less than 180 million pounds, down from a peak of 1.67 billion pounds a decade ago

* In July it won a 1.4 billion pound contract to help build Britain’s 56 billion pound High Speed 2 railway that will connect London to cities in the north of England

OPENREACH DEAL EXTENSION

In February, Carillion telent, a 60:40 joint venture, signed a three-year extension to its framework agreement with Openreach, a division of BT, with a potential value of up to 1.5 billion pounds. Works include the maintenance, extension and repair of the telephone and data network in the North East, Midlands & Wales, South West and London & North Home Counties of England. (bit.ly/2zOFQ3n)

UK MINISTRY OF DEFENCE CONTRACT

Carillion's joint venture with KBR was awarded in 2016 a construction and support services contract by Britain's Ministry of Defence worth over 1.1 billion pounds. Construction works have an estimated value of 680 million pounds, with completion scheduled for 2020. (bit.ly/2zLPO7W)

SCOTTISH ROAD CONTRACT

A consortium including construction firms Carillion, Balfour Beatty and Galliford Try, was awarded a 745 million pound contract in 2014 to build roads in Scotland which is scheduled to be completed next year. (reut.rs/2hxaEO3)

SMART MOTORWAY CONTRACTS

Carillion, in joint venture with Kier, was awarded a contract in 2015 by Highways England for a package of "smart motorway" works that have an estimated value of up to approximately 475 million pounds. Work scheduled for delivery over until 2019. (bit.ly/2irYQxx)

METROPOLITAN HOSPITAL PUBLIC PRIVATE PARTNERSHIP PROJECT

A Carillion joint venture, the Hospital Company, secured a 30-year concession 430 million pound contract from the Sandwell and West Birmingham Hospitals NHS Trust to deliver the new Midland Metropolitan Hospital as a Public Private Partnership. Completion is scheduled for mid-2018. (reut.rs/2io4W1I)

$1 = 0.7577 pounds Reporting By Justin George Varghese and Subrat Patnaik in Bengaluru; Editing by Jason Neely and Mark Potter

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