17 July 2017 | Herpreet Kaur Grewal
Support services group Carillion has appointed professional services firm EY to support its strategic review with a particular focus upon cost reduction and cash collection.
Carillion's board is undertaking a comprehensive review of the group's business and capital structure, and taking immediate action to generate significant cash flow in the short term and to cut down on average net borrowing.
The board has identified a number of actions to reduce average net borrowing including further cost efficiencies, an increased focus on managing working capital, and on recoveries and cash collection.
Keith Cochrane, interim chief executive, said: "Alongside our own efforts, EY will provide support across the business and bring an external perspective to our cost reduction and cash collection challenge. My priorities are to reduce the group's net debt and create a balance sheet that will support Carillion going forward.
"We need to simplify the business and demonstrate that value can again be created for shareholders by focusing the group on its core markets, including infrastructure and property services, in which it has good strengths and leading positions."