Carillion shares slide after it is included on school-building shortlist

 
Oliver Gill
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Graduates Celebrate On The Southbank
Carillion delivered a fresh blow to investors on Friday (Source: Getty)

Shares in contractor Carillion closed lower, despite it being included on a shortlist of firms selected to build new schools in the UK.

Having risen as much as 11 per cent as the market opened, shares closed at 21.25p, 1.2 per cent lower, after the ailing firm was selected along with nine other companies to be included on the Education & Skills Funding Agency’s (ESFA) school building framework.

Interim boss Keith Cochrane said the announcement demonstrated "we continue to retain the confidence of key customers despite the group’s current challenges".

The inclusion on a shortlist comes after City A.M. revealed yesterday Carillion is in a multi-million pound row with a local council over money the company believes it is owed.

Oxfordshire County Council is in discussions with Carillion after terminating a £500m contract earlier this year.

On Friday, central government reaffirmed its support for the firm, which has written down £1.5bn of contracts since July.

Today's announcement paves the way for Carillion to bid for school-building contracts worth more than £12m each across both the north and south of the country. Carillion said such contracts are worth around £2.64bn in total between now and 2021.

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