Carillion today gave its shareholders a reason to be cheerful, with news it had secured a £300m Manchester property development contract.
After hitting record lows yesterday, shares in the stricken construction firm popped as much as eight per cent and are currently five per cent higher than yesterday's close.
The contract is with property group Ask Real Estate, which is developing a 1.74-acre hotel and office complex close to the Manchester Central convention centre and the Hilton Tower. The deal was first revealed by Construction News earlier today.
Ask is majority owned by Carillion.
Carillion, the second largest contractor for the British government, is working with accountants and investment banks to shore up its books and devise a financial framework for it to be viable in the future. The firm's shares have fallen almost 80 per cent since mid-July when it revealed an £845m contract writedown and announced its chief executive Richard Howson would step down from the role.
Howson has been retained as the chief operating officer of the company. Market insiders have suggested his contacts in the Middle East may be pivotal in rounding up cash from customers to bolster the balance sheet.
Earlier this week, Carillion revealed it will provide an update on the crisis management process and trading on 29 September.
Read more: BT's Openreach checks £1.5bn Carillion deal