Not to be the last contractor to report the impact of Carillion's downfall, Van Elle has today said it may not recover the funds.
Companies: Van Elle
Van Elle is among the first of many subcontractors to Carillion to report on how it has been affected by Carillion's downfall. The Group was a lead subcontractor for much of Carillion's rail improvement and maintenance contracts with Network Rail.
Management said today it is owed a total of £1.6m in outstanding debts and for works-in-progress, while a further £2.5m in Revenue was expected in H2 17 from future contracts.
While it was too early to say what will happen regarding its order book of Carillion contracts, Management warned the outstanding £1.6m may not be recovered:
"The Group will engage with Carillion and its advisers (including the Official Receiver) to determine the status of outstanding payments, but shareholders should note that, in the event that Van Elle is unable to recover any monies owed, there would be an adverse financial impact on the Group."
Carillion's announcement yesterday it's £1.5 bn of debt had got the better of it came as an abrupt shock to many and has left a large chunk of its 43,000 employees, 20,000 of whom are in the UK, unsure about their future.
UK employees on public sector contracts will continue to be paid whilst those on private contracts will see their pay run out tomorrow.
Shares in Van Elle were down 11% to 84p at the time of writing.
Speedy Hire, another long-standing subcontractor of Carillion, saw a dip in its share price yesterday after Carillion's announcement. It said today, however, that the impact of Carillion's situation is "not expected to be material to the Group".