Kenj2
13 Jan 2018
Re: Injection of equity? "The FCA are investigating the information the company made available to investors and, if they find it to be misleading, they may order that investors who bought between certain dates be compensated. It happened with Tesco"Compensated by who?Carillion does not have the funds to meet it's day to day bills, let alone recompense deceived shareholders. Tesco is a viable, money making business, they are not dependent on dodgy contracts.Carillion are on the verge of bankruptcy, it will be a good while before they could hope to repay cheated shareholders. That's if they survive, which is far from certain.
daw2905
13 Jan 2018
Re: Injection of equity? trader jack, you say "I know that I will never see a penny of what I lost through this company's mismanagement. "There is possibly one glimmer of hope. The FCA are investigating the information the company made available to investors and, if they find it to be misleading, they may order that investors who bought between certain dates be compensated. It happened with Tesco (search 'tesco compensation scheme' for details)It's certainly my only glimmer of hope, as I didn't sell out on the fateful July day, only selling last week at just above 22p from an average of 200p.
FRTEB
13 Jan 2018
Re: Injection of equity? "...the whole of the present and former directorship and management committee sshould be held responsible, put on trial for fraud and banged up for a few years." I completely agree with that. And I would think you'd be hard-pressed to find a shareholder who thought otherwise.
trader jack
13 Jan 2018
Re: Injection of equity? The "too big to fail tag" is a false idea. Perhaps it had meaning for the banks where evryday people kept thair hard earned money for safety. This is a commercial enterprise and should not be labelled "too big to fail!"False accounting, lazy auditing by comapnies that should know better, false reporting and a management bent on misleading their shareholders.There should be absolutely no bail out The company has to be put into administration and wound up and the whole of the present and former directorship and management committee sshould be held responsible, put on trial for fraud and banged up for a few years.Only then might the penny drop and other companies who could get themselves into similar situations realise the gravity of deceiving shareholders.IT IS NOT THE JOB OF GOVERNMENT TO BAIL OUT FRAUDULENT COMPANIES.I lost money, I manage to bail out the day after they declared their problems last July I was in Cyprus on holiday at the time. I know that I will never see a penny of what I lost through this company's mismanagement. I am just an aggrieved and poorer private investor.TJ
raptor66
13 Jan 2018
Re: Injection of equity? Its financial black hole is far too big to be filled by shareholders alone.Also, because it is 'too big to fail' and lenders know that the hmg will foot the bill.Carrillion, our next Lloyds and RBS, 85% hmg:15% Shareholders.
Cashman103
13 Jan 2018
Injection of equity? I haven`t followed this company, but I`ve noticed in the news that it`s in trouble. Glancing at shareholders funds, it as been decreasing over the past few years. Also, cash has been dramatically increasing as dividends to shareholders.About 10 years ago I had shares in Inchcape. Their profit margin was about 4%, similar to Carillion. They kept returning cash to share holders by paying dividends and buying back its shares. When the financial crisis hit, they were forced to raise equity. Once it recovered, they did a 6:1 swap with the shares.Why hasn`t Carillion gone to its shareholders for cash?
LifeInPlastic
13 Jan 2018
Re: The game is up I don't think the need for cash is actually sudden. This is what happens when you've been hiding the truth for as long as it seems they have been.
reaist
13 Jan 2018
Re: The game is up Accounting standards allow losses to sit on balance sheets as goodwill. Under old standards it had to be amortised. It's still sat there.
pyueck
13 Jan 2018
Re: The game is up Yeah it's a very good article, however a lot has happened since the 21st December. The company is currently in discussions with creditors to a) agree short term finance (should decide if company survives at all or not) and b) agree to restructure the balance sheet (should decide how much existing shareholders get of restructured company).Still very unclear if a will be managed (surely they will have to finalise this by mid next week) and totally unclear what the result of b will be.Even if that all sorted, still a few more serious things to sort out. Sounds like the company was terribly run, with poor controls over bidding, cost control, supplier relations, cash collection and probably most seriously controls over their financial reporting. These problems have caused serious damage to the company, including destroying relationships with suppliers, staff, lenders and equity investors. Rebuilding these relationships could prove very hard. It is my understanding that some suppliers have thought it's not worth even touching Carillion work due to past problems. This is what this article really highlights.Massive issues, massive challenges. Bit like running a hurdle race even if they get over the first two big hurdles, a lot of serious challenges remain. Also to top it all off I have not really seen any evidence that even if all the above is sorted, the fundamental business case is a profitable one. They probably only have so much revenue as they bid crazy bids and seemingly only appeared profitable because they did not properly account for contracts that would overspend or those where the customer was not paying. Will a more robust bidding strategy mean they wont win any bids at all? Still not clear about why the company suddenly needs £300m! Crazily large amount to have as a short cashflow issue. Also not really sure why the Qataris are not paying up, i am no fan of the Qataris, however they do usually pay their bills, I suspect there is more to this than the Qataris just don't want to pay up. Apparently the Qataris think they are owed money for the contract not being met, maybe they are right.
Ripley94
13 Jan 2018
Re: The game is up City AM article is 21 Dec 2017.
Richygm
13 Jan 2018
Re: The game is up And what use were the auditors in all this? For a company this size, they must have charged several 100k a year.
FRTEB
12 Jan 2018
Re: The game is up Wow! Just, wow!
LifeInPlastic
12 Jan 2018
Re: The game is up Hmmmmm:"....claims the hedge fund interest was a product of leaks from senior meetings"
carol conneely
12 Jan 2018
The game is up [link] above article shows the outright fraudulent activity going on by the senior management to raise much needed cash. It’ll be interesting to see how much contagion spreads to the JV partners.
Ripley94
12 Jan 2018
Re: Effectively bust Another share a hold lomin seemed to be in a similar situation a couple of years ago.Comparable ?
