Carillion shares jump after being awarded HS2 contract

Carillion shares jump after being awarded HS2 contract

Troubled outsourcer Carillion (LON:CLLN) has been awarded a contract from the British government to develop the HS2 rail line, one of several contracts announced on Monday.

The company was named as one of the winners after a competitive bidding process, with several large firms competing for the £6.6 billion contracts. Carillion has been awarded two contracts worth a combined £1.34 billion to build tunnels on the central section of the route, between London and Birmingham.

The deal will come as a relief to the company, who have seen shares plunge over the last couple of weeks after a shock profit warning.

In a separate announcement, the company said it had appointed professional services firm EY to support its strategic review, with a particular focus upon cost reduction and cash collection.

The board is undertaking a comprehensive review of the Group’s business and capital structure in the wake of the profit warning, alongside taking immediate action to generate significant cashflow in the short term and achieve a reduction in average net borrowing.

Leave a Reply