Carillion, the building company which somehow landed the contract to run Croydon’s public libraries, is so strapped for cash that they have unpaid bills from their suppliers for use of photo-copiers and paper.
Carillion is a construction company which was seeking juicy profits by grabbing outsourced libraries
The value of the company’s shares plunged a further 30 per cent this morning, as the troubled firm issued the latest in a series of profit warnings and trading updates.
Carillion announced to the London Stock Exchange that it is to try to recapitalise, it downgraded profit expectations, and revealed higher than anticipated debts and said it expected to be in breach of covenants – agreements to pay loans – by the end of the year.
Carillion’s problems relate mostly to its construction business, but it is having a knock-on effect to the subsidiary which is running Croydon’s and other local authority libraries.