The Group reported a 'disappointing' set of Interims, with Profit down 40%.
Companies: Carillion plc
Carillion (LON: CLLN) has released its Half-Year Report for H1 17 this morning, clearly leaving investors unimpressed by the results.
The stock was down 15% in early trading as it reported flat revenue at £2.5bn and underlying profit down 40%.
PBT swung from £84m in H1 16 to a loss of £1153 in H1 17, EPS swung from £15p per share to a loss of 261p and net debt ballooned to £571m from £291m.
Management said it now expects its Full-year results to be lower previously expected, with Revenue expected to be £4.6bn - £4.8bn, down from £4.8bn - £5.0bn.
The Group also announced a further £200m provision for services contracts, which comes just two months after its already announced a £845m provision in July.
Clearly unhappy with the Group's performance, Interim CEO Keith Cochrane said:
"No one is in any doubt of the challenge that lies ahead."
The stock has plunged significantly in the last 12 months, with today's share price of 56p worth less than a quarter of its price on the same day last year (254p).
Management also noted its ongoing discussions regarding the sales of the Group's business in Canada and its UK Healthcare business.
In the five years to 2016, Revenue CAGR average was just 1% while net profit CAGR average was -2%. The Group trades at a PE ratio of 2x versus the industry median of 9x.
