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Nine Carillion projects to be taken on by John Laing
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John Laing Infrastructure Fund (JLIF) has confirmed that it plans to replace Carillion on nine facilities management projects.

Laing, one of Europe’s largest listed investors in public infrastructure projects, said there would be “minimal service disruption” after the collapse of Carillion earlier this month.

Laing continued that it expects “advisory and transaction costs in respect of the appointment of replacement facilities managers to cost approximately £3 million in aggregate.”

Banks were forced to pull the plug on Carillion, putting the company into liquidation, with the Government stepping in to guarantee public services provided by the company continuing, ranging from providing school dinners to thousands of children across the country to maintaining road works.

In a statement, John Laing added: “The company will continue to manage the situation as it develops and provide further updates as appropriate.”

The value of the nine projects is about 8.5% of the total portfolio value and about 9.6% of its net asset value, claimed JLIF

In a statement, JLIF said: “The (fund’s) investment adviser believes that the compulsory liquidation of Carillion should have no material impact on the Company and no impact on the company’s dividend policy.”

Carillon shares plummet
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Troubled construction and services group Carillon experienced more woes as news emerged that shares in the group sunk by as much as 30 per cent as a result of a further profit warning.

In addition, the company revealed that it is now likely to breach the debt covenants, with an average debt for 2017 likely to be in the region of £925m.

The company’s share value has dropped to a tenth of its pre-2017 value.

“Constructive dialogue is continuing with our financial stakeholders and I am grateful for their support. I remain focused on addressing this issue before my success, Andrew Davies, takes up the role (of chief executive) on 2 April 2018,” commented interim chief executive Keith Cochran.

The Unite union, representing over 1,000 Carillon workers has called for urgent talks with the company to safeguard jobs.

“Unite has hundreds of members at Carillion all of whom will be highly concerned about the company’s financial situation,” commented Unite national officer fro construction, Bernard Mcauley.

“Aside from the directly employed workforce there are significantly more who are employed by subcontractors and agencies on Carillion sites throughout the country.

“It is vital that the senior management of the Carillion Group sits down with Unite and provides a warts and all prognosis of the company’s long-term future in order for our members to be properly informed of what the future holds. They need to know how Carillion intends to deal with its current financial crisis.”