Contractor states that profit and assets will remain unaffected despite rumours of £400m writedown
Carillion has said that its profit and assets will not be affected by charges related to its acquisition of Alfred McAlpine, despite reports that it will make a £400m writedown related to the deal.
Carillion said that only post-acquisition restructuring costs, which it has previously estimated at £30m, will be deducted from its profit and assets when it reports its full-year results.
Any other sums, which the company refers to as “fair value” adjustments, will be treated as pre-acquisition adjustments.
An article in the Sunday Telegraph said that McAlpine was due to make a goodwill adjustment of £183m alongside the restructuring costs, contract “settlements” of about £100m as it readjusted downwards the money it expected to receive from some of McAlpine’s jobs, and a writedown of £30m against the value of one of McAlpine’s IT systems. McAlpine’s pensions deficit also stands at about £50m.
The paper said that apart from the restructuring costs, the sums would not actually be cash losses.