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'No doubts over challenge'

Carillion plunges to £1.15 billion half-year loss

Keith CochraneConstruction project manager Carillion lost a fifth of its value today after it announced a huge half-year loss.

Shares plunged 19.8% to close at 51.25p following the company’s interim figures showing a loss of £1.15 billion against an £84m profit in the same period last year. Uunderlying pre-tax profits fell 40%.

It has taken a £134 million write down to cover poor decisions by previous management and warned that full-year results will be lower than current market expectations.

It has also made a provision of £200m for losses on its support services contracts. This is in addition to an £845m write-off announced in July.

Keith Cochrane, interim chief executive (pictured), who replaced Richard Howson in July, 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.

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