Carillion has released its financial results for the first half of this year, revealing a £1.15bn loss and a further writedown of £200M.
The firm said it has a “clear plan” to address its financial problems.
The half year results showed losses before tax up to £1.15bn, compared to £84M for the same period last year. Revenue remained flat at £2.5bn. The delayed results follow a profit warning issued in July.
In addition to the £845M writedown previously announced in July for construction contracts, today the firm announced a further £200M writedown for support services contracts.
Looking forward, the firm said that as well as continuing to refocus the business on its core markets of support services, infrastructure and building, it was looking for an initial cost reduction target of £75m by mid-2019.
It now expects total revenue for the year to be between £4.6bn and £4.8bn, previous expectations were £4.8bn to £5.0bn.
Interim chief executive Keith Cochrane said: “This is a disappointing set of results which reflects the issues we flagged in July and the additional £200M provision for our Support Services business that we have announced today. We now expect results for the full year to be lower than current market expectations.
“The Strategic Review that we launched in July has enabled us to get a firm handle on the Group’s problems and we have implemented a clear plan to address them. Our objective is to be a lower risk, lower cost, higher quality business generating sustainable cash backed earnings. In the immediate short term, our focus is to complete the disposal programme, accelerate our action to take cost out of the business and get our balance sheet back to a place where it can support Carillion going forward.
“No one is in any doubt of the challenge that lies ahead. We have made an encouraging start and the ambition is there to build on that progress. At the heart of this company, there is a strong core. Supported by an operating model that manages risk much more effectively and led by a fresh management team with a mandate to drive cultural change, I am confident that a strong business can emerge.”