Bank boost and healthcare sale lift shares at creaky Carillion

There was some much needed relief for Carillion shareholders on Tuesday, when the battered firm said it was selling its healthcare arm for £50 million.

That deal, a sale to Serco, and news that it has secured a new £140 million line of financing, saw the shares jump 15% to 50p.

They are still a long way from the 236p at which they started this year.

Carillion is aiming for £300 million of disposals in the next 18 months, which could include the sale of its Canadian arm. The Serco deal should be finalised in the next few weeks.

Keith Cochrane, the interim chief executive, said: “Today we are announcing progress on a number of fronts and whilst our customers and creditors continue to be supportive, much remains to be done.”

The company has some recent contract wins to be speak of. They include a £105 million construction project at Dubai Creek Harbour.

It also won a £200 million contract with Gigaclear to build a broadband network in Devon and Somerset, and a £71 million contract to build student accommodation for the University of Manchester.

Last month, Carillion revealed contract write-downs and a £1.15 billion loss.

Today, it said five of the company’s core lenders have agreed to £140 million of loans, which are “fully available” now.