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BUZZ-Carillion: Down 59 pct after warning on profit, covenant
November 17, 2017 / 8:28 AM / a month ago

BUZZ-Carillion: Down 59 pct after warning on profit, covenant

(Adds shares, milestones, net debt forecast)

** Crisis-hit British builder’s shares plunge 59 pct in heavy trade, after issuing third profit warning since July

** Stock top faller across Europe and is poised for worst day since listing

** Sees 2017 profits “materially lower” (third profit warning this year), and says it would breach its financial covenant

** Hit by delays to certain PPP (Public–Private Partnership) disposals, lower margins across a few UK Support Services contracts and a slippage in commencement of a big project in Middle East - which analysts at Stifel find “particularly concerning”

** Average debt is guided to be 875-925 mln pounds ($1.16 billion - $1.22 billion), above the previously guided 850 mln pounds

** Analysts at Peel Hunt suspend estimates after the warning, says “see little value currently for equity holders”

** Since July, co is trying to implement measures to reduce costs, collecting cash, executing its disposals programme

** These measures will serve to reduce the average net debt over time, but will not be sufficient to enable co to achieve targeted net debt to EBITDA ratio by end of 2018 - statement

** Stock -92 pct​ YTD ($1 = 0.7553 pounds) (RM: justin.varghese.thomsonreuters.com@reuters.net)

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