- Reuters/Eddie Keogh
- The UK’s financial regulator has begun an investigation into troubled construction firm Carillion.
- The Financial Conduct Authority is looking into announcements made by the firm in 2016 and 2017, over which time Carillion’s profits declined and shares plummeted.
- Carillion said it was cooperating fully with the investigation.
LONDON – The UK’s financial regulator has begun an investigation into troubled construction giant Carillion.
The Financial Conduct Authority (FCA) is investigating the “timeliness and content” of announcements made by the firm between December 7, 2016, and July 10, 2017.
Carillion said in a statement it was “cooperating fully with the FCA.”
The update also said Carillion planned to undertake a review of the business, suspend dividends and that former CEO Richard Howson would step down.
Prior to that, on December 7, 2016, the group had blamed a slowdown in government spending, following the UK’s Brexit vote, for a fall in orders and lower-than-expected profits for the second half of 2016.
In November 2017, Carillion’s shares plunged a further 60% after it warned it may breach debt covenants.
The FCA declined to comment further on the investigation when contacted by Business Insider.
Carillion’s shares were down 4.10% as of 8.24 a.m. GMT (3.24 ET) on Tuesday morning:
- Markets Insider