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Compulsory liquidation · 15 January 2018

Carillion

Main contractor · Wolverhampton · West Midlands · Part of Carillion

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What happened

CARILLION PLC (company number 03782379), incorporated in 1999, entered compulsory liquidation on 15 January 2018. Its status at Companies House is now: liquidation.

Why it failed

An acquisition-led dash for cash, aggressive accounting and losses on key contracts led to £1bn of write-downs in 2017; lenders and the Government then refused more support.

  • Main reason: Losses on contracts
  • Cash flow
  • Accounting irregularities
  • Funding withdrawn
  • Sale or investment failed

Our summary of the reasons given in the report by Parliament's business and work and pensions committees. This records the committees' findings after their inquiry.

A court orders the company to be wound up, usually after a creditor petitions because it is owed money. The company's assets are sold and the proceeds shared among creditors.

Previously known as: CAMERON 1999 PLC.

Timeline

The last accounts and payment report before the failure, then what happened, with the time between each.

  1. 31 December 2016

    Last accounts filed were made up to this date

    13 months later

  2. 15 January 2018

    Winding-up petition presented

  3. 15 January 2018

    Winding-up order made by the court

AccountsPayment reportInsolvency

Before it failed

Key figures

Turnover in its last accounts, year to Dec 2016
£4.4bn
Accounts at Companies House
Profit before tax, year to Dec 2016
£146.7m
Accounts at Companies House
Staff, year to Dec 2016
31,628
Accounts at Companies House
Net assets, year to Dec 2016
£729.9m
Accounts at Companies House
Owed to suppliers and subcontractors (estimated), MPs' joint committee report on Carillion (HC 769)
£2.0bn
about 30,000 creditors. Expected return to unsecured creditors: none expected for Carillion Construction; uncertain for the plc (September 2025)
MPs' joint committee report on Carillion (HC 769)

The last accounts filed were group accounts made up to 31 December 2016, 12 months before it failed.

The full filing history, including any late filings, charges and director changes, is on Companies House.

Lessons learned report

Carillion: how a construction giant collapsed, and 12 checks to protect your business

On 15 January 2018, Carillion collapsed. It owed around £2 billion to about 30,000 suppliers, subcontractors and other creditors. One early warning sign came almost five years before: its 120-day payment terms. This report tells the story in plain English. It also gives you 12 checks to make before you work for a main contractor.

Owed to suppliers and subcontractors
About £2bn

Carillion owed around £2 billion to its 30,000 suppliers, subcontractors and other short-term creditors, and the Parliamentary committees said they would get little back from the liquidation.

Source: House of Commons BEIS and Work and Pensions Committees, Carillion (HC 769), 16 May 2018, January 2018 (at liquidation)

Standard payment terms
120 days

Carillion's standard payment terms to suppliers were 120 days; suppliers could be paid after 45 days only by selling their invoices at a discount to Carillion's bank through its early payment facility.

Source: House of Commons BEIS and Work and Pensions Committees, Carillion (HC 769), 16 May 2018, From 2013 until the collapse in January 2018

First profit warning to liquidation
About 6 months

Carillion announced an £845 million write-down on its contracts on 10 July 2017 and entered compulsory liquidation on 15 January 2018.

Source: House of Commons BEIS and Work and Pensions Committees, Carillion (HC 769), 16 May 2018, 10 July 2017 to 15 January 2018

Liabilities against cash at collapse
Nearly £7bn vs £29m

Carillion went into liquidation with liabilities of nearly £7 billion and just £29 million in cash.

Source: House of Commons BEIS and Work and Pensions Committees, Carillion (HC 769), 16 May 2018, 15 January 2018

Read the full report

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