Carillion major shareholder Kiltearn shares £55m pay pot among partners

 
Oliver Gill
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British Construction Company Carillion Goes Into Compulsory Liquidation
Edinburgh-based Kiltearn owned a stake of more than 10 per cent in Carillion (Source: Getty)

The collapse of Carillion failed to dent a spike in partner pay at one of the doomed contractor's largest shareholders, according to accounts filed with Companies House today.

Six members of Kiltearn Partners shared pay of £55m during the year to March 2018.

Edinburgh-based Kiltearn considered suing Carillion last year as its 10 per cent stake lost its fund tens of millions of pounds in value.

Investment managers at the fund led criticism of Carillion as part of evidence submitted to a parliamentary investigation into the collapse of what was Britain's second-largest contractor in January. Kiltearn claimed Carillion's directors knew it was in difficulty earlier than it publicly admitted.

On Wednesday MPs released their findings, which included a stinging attack on some of Carillion's management, a call to break-up the audit firms which signed off the firm's accounts and questioned the roles of regulators and the government in the Wolverhampton-based firm's collapse.

Despite Carillion's demise, annual turnover at Kiltearn rose from £55.6m to £68.2m. Partner profit share and pay rose from £48.6m to £55.4. This was shared among the fund’s limited company and its five founding partners: Murdo Murchison, Craig Watson, Craig Collins, Khaled Mohamed and Stuart Gunderson.

Kiltearn Limited was the largest paid member, taking a profit share of £25.4m, of which £10.9m was paid out in dividends to approximately 20 staff who are shareholders in the firm.

Read more: Big Four warned they face extinction if they fail to learn from Carillion

US

While the investment manager had a large stake in Carillion, profits rose owing to the fact most of its turnover was generated outside of the UK – £51.4m came from the US with only £1.5m from the UK.

Kiltearn sold out of Carillion prior to the firm falling into liquidation on 15 January.

The Financial Reporting Council (FRC) is currently investigating the actions of two of Carillion’s former finance directors and its auditor KPMG.

“Kiltearn is watching with interest to see if any of Carillion’s other former advisers become the subject of similar investigations,” Murchison wrote in a letter to MPs in February.

Read more: Carillion investors vent KPMG anger – accounts "were not a good guide"

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