Carillion set to sever its construction roots

Carillion’s shares have been quoted over the years since its de-merger from Tarmac in the Stock Exchange’s construction section. All that is about to change when Carillion is re-classified under Business Support Services.

The switch will be made next weekend.

Carillion says that there has been a “material change” in the composition of its business activities following the acquisition of Alfred McAlpine.

Amey and Jarvis were the first construction groups to blaze this trail. The big attraction is that shares prices lift overnight as players in the support services sector trade on a higher multiple of anticipated profit earnings.

Later, Amec spent more time and effort trying to make the same move.

• Carillion has sold the equity in four PPP projects, raising £36m of cash. The projects are a mix of schools and hospitals.

Following the latest equity sale, Carillion has 21 projects where it has invested, or has commitments to invest, a total of £175m.