Struggling outsourcing company Carillion, which is a major government supplier, has revealed it is subject to a Financial Conduct Authority (FCA) investigation over the ‘timeliness and content’ of some of its financial announcements
In a statement to the stock exchange, Carillion said it has been notified that the FCA ‘has commenced an investigation in connection with the timeliness and content of announcements made by Carillion between 7 December 2016 and 10 July 2017,’ and that the company is ‘cooperating fully with the FCA.’
During the time period cited, Carillion published a full-year trading update, its result for 2016, a statement on its annual general meeting and a trading update on the first half of 2017.
In July 2017, the company announced chief executive, Richard Howson, was to step down and be replaced by Keith Cochrane on an interim basis. It also announced a review of its business, that it was suspending its dividend and that it expected corporate performance to undershoot management expectations. Following a sharp fall in its share price, Carillion fell out of the FTSE 250 ranking.
The FCA has made no comment on the announcement.
