max temp: 1°C

min temp: -2°C


Firms left to count the multi-million pound cost of Carillion collapse

PUBLISHED: 08:52 16 January 2018 | UPDATED: 09:20 16 January 2018

A general view of Carillion plc offices in Wolverhampton, as the  company's partners and sub-contractors continue to count the cost of its collapse. Picture: Aaron Chown/PA Wire

A general view of Carillion plc offices in Wolverhampton, as the company's partners and sub-contractors continue to count the cost of its collapse. Picture: Aaron Chown/PA Wire

Engineering firm Van Elle has warned over a potential £1.6m hit if it fails to claw back payments owed by collapsed construction giant Carillion.

The group said it would attempt to recoup the money by launching talks with Carillion, its advisers and The Official Receiver, which is leading the liquidation process of the stricken firm.

But in a note of caution to shareholders, Van Elle said it was bracing for an “adverse financial impact” if the money cannot be recovered.

It also pinpointed a further £2.5m worth of revenue linked to contracts with Carillion in the second half of the financial year, but said it was “too early to say” what impact the firm’s demise would have on the future work.

Van Elle had joined forces with Carillion on a string of contracts, mainly to carry out rail improvement and maintenance work for Network Rail.

Jon Fenton, chief executive of Van Elle, said: “While it is disappointing to note the Carillion announcement we continue to develop further our strong relationship with Network Rail and its principal contractors, and remain committed to developing high-quality solutions in the rail division both for upgrade and maintenance work.”

In a separate stock market announcement, John Laing Infrastructure Fund said it was rolling nine Carillion projects onto new providers as it triggered company contingency plans.

However, it said the firm should not suffer any “material impact” from the implosion of Britain’s second biggest construction company.

The updates join announcements made by companies on Monday when infrastructure group Balfour Beatty said it would have to stomach a financial blow of between £35m to £45m in the wake of Carillion’s collapse.

Galliford Try said the firm’s demise had left a £60m to £80m hole in the funding of the Aberdeen Western Peripheral Route road project in Scotland.

Meanwhile, Kier group said it has contingency plans in place for its joint ventures with Carillion, adding that it does not expect to take a financial hit.

The breakdown of Carillion has put thousands of jobs at risk and saw the government heavily criticised for its role in the debacle.

Whitney Houston. What a voice. But can Queen of the Night tribute Shanice Smith live up to the legend?

A number of elderly people living in sheltered accommodation in Holbrook will receive emergency supplies tomorrow after a cancelled oil delivery left them without heating overnight.

A London man has been jailed for his part in a “despicable con” which fleeced a 75-year-old Ipswich widow of her life savings – leaving her a “nervous, frightened shell” of a woman.

Commuters can expect further disruption on Monday morning as a yellow weather warning for ice has been issued across Suffolk and Essex in the wake of the ‘Mini Beast from the East’.

Hundreds of people have rescued hostages, survived a laboratory lockdown and recovered the Holy Grail from popular Ipswich escape rooms – and now three new challenges could be thrown into the mix.

A Ipswich man accused of driving his car into a neighbour before charging at another neighbour with an axe has had his sentencing hearing adjourned.

Hardy fundraisers are being urged to put their agility to the test this summer in support of St Elizabeth Hospice.

“I am afraid those days are gone” – that’s the message from Suffolk Police and Crime Commissioner Tim Passmore on bobbies patrolling the beat.

An Essex city has been named as the best place to live in the East of England.

A Suffolk student nurse impacted by a national loans blunder has said she is considering selling her car so she can complete her studies.

Most read

Show Job Lists

Topic pages

Newsletter Sign Up

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24