Carillion has been in choppy waters for some time. With poor profit margins and a leadership shake-up following the departure of its previous CEO, the business has been looking at ways to reduce its debt by selling off a number of its assets and transform its present operational model.
Its largest shareholder, Kiltearn Partners, has since halved its stake in the company, exemplifying the company’s financial woes, which reached losses of over a billion pounds this year.
However, it has recently been announced that the Carillion has sold a large portion of its healthcare facilities management unit to public service provider Serco for £47mn. The business will transfer its facilities management contracts in phases, with over 15 sites included in the deal.
The Disposal forms part of the Group’s £300 million non-core disposals target announced as part of its strategic review in order to reduce net debt and refocus the Group on its core strengths and markets.
Commenting, Interim Chief Executive, Keith Cochrane said: “Whilst we continue to target cash collections, reduce costs, execute disposals and focus on delivering for our customers, it is clear that significant challenges remain and more needs to be done to reduce net debt.
Constructive dialogue is continuing with our financial stakeholders to rebuild the Group’s balance sheet, and I am grateful for their support. I remain focused on addressing this issue before my successor, Andrew Davies, takes up the role on the 2nd April 2018.”