Shares of Carillion Drop after the Contractor is Included on School-building shortlist

Photo © Terry Robinson

Shares in Carillion, a contractor,  closed lower, despite it being named on a shortlist of firms that were selected to build new schools in the United Kingdom.

Having grown as much as 11 percent as the market opened, shares closed at 21.25p which is lower by 1.2 percent, after the struggling firm was chosen along with nine (9) other companies to be included on the school building framework of the Education & Skills Funding Agency (ESFA).

With regards to the announcement, Keith Cochrane, its Interim boss, said: “We continue to retain the confidence of key customers despite the group’s current challenges.”

The inclusion on the shortlist comes after reporters revealed that Carillion is in a multi-million-pound row with a local council over money that the company believes it is owed.

Oxfordshire County Council is in talks with Carillion after terminating a £500m contract earlier in 2017.

On Friday, the central government reaffirmed its support for Carillion, which has written down contracts amounting to £1.5bn since July.

The announcement paves the way for Carillion to bid for school-building contracts that are worth over £12m each across both the north and south of the United Kingdom. Carillion said that such contracts are worth around £2.64bn in total between the present and 2021.