Carillion faces investigation by Financial Conduct Authority

Construction and outsourcing firm Carillion is being investigated by the UK financial services watchdog over statements issued over the first half of last year.

In a brief statement to the stock exchange this morning, Carillion said the Financial Conduct Authority (FCA) is investigating “the timeliness and content of announcements made by Carillion between 7 December 2016 and 10 July 2017”.

“Carillion is cooperating fully with the FCA,” the company added.

Between December 2016 and mid July 2017 Carillion’s share price plummeted 76% from 256 pence to 55 pence on the back of profits warnings that resulted in the removal of chief executive Richard Howson.

The firm’s bumpy year was compounded in November when it revealed that it expects to breach its financial covenants by the end of December and that full-year profits will be “materially lower” than current expectations.

The FCA has made no official statement as yet outlining the scope of the investigation.

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