Carillion’s record-breaking run of declines showed little sign of stopping on Wednesday, falling a further 10 per cent in early trading as analysts raise concerns about its long-term viability.
Shares in the The FTSE 250 construction and support services group dropped a total of 59.5 per cent over Monday and Tuesday, after it warned that it would need to take action to shore up its balance sheet after writing off £845m worth of construction contracts.
Analysts at UBS argued yesterday that its shares could head all the way to zero if support services trading now deteriorates – a danger given recent profit warnings from peers such as Mitie and Capita, which have seen a slowdown in contracts since the UK’s vote to leave the EU.
At publication time shares in the group were down 10 per cent (and counting) to 69p, bringing its losses for the week to over 63 per cent.