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Unhappy New Year: Carillion Faces FCA Probe

Carillion contractor builder vans

Carillion, the Wolverhampton-based contractor involved in HS2, Birmingham’s Paradise office development and the Midlands MET Hospital, has disclosed that the Financial Conduct Authority is investigating announcements made by the firm between 7 December 2016 and 10 July 2017.

"Carillion is cooperating fully with the FCA," the company said.

Approached by Bisnow, the Financial Conduct Authority declined to comment.

The move knocked-back Carillion's share price on Wednesday morning, 3 January.

The investigation comes after a year of bad news for Carillion, including contract write-downs, covenant trouble with its lenders and the departure of chief executive Richard Howson.

The move comes as the latest construction industry data shows a slowing market in commercial property and civil engineering, sectors where Carillion is strong, but growth in residential building.

The IHS Markit/CIPS U.K. construction purchasing manager's index published Wednesday showed a modest uptick in orders.

"Business optimism was subdued at levels not seen since 2013, but the improvement in new order growth in December contributed to the biggest surge in job creation since June," Chartered Institute of Procurement & Supply Director of Customer Relationships Duncan Brock said.

Related Topics: Paradise Birmingham, HS2, Carillion