‘Carillion effect’ takes toll as banks shy away from lending

By Dave Rogers2019-08-29T05:00:00

EY senior figures point finger of blame at last year’s collapse of contractor for ‘shattering lender confidence’

Contractors have again been warned that nervous banks are pulling down the shutters on lending to the industry in the wake of Carillion’s collapse last year.

Last month, Ian Marson, the UK head of construction at EY, said the volume of profit warnings since the beginning of the year is expected to push the 2019 figure beyond levels not seen since the last recession.

And his colleague Mike McCartney, EY’s director of capital and debt advisory, said: “Carillion was a catastrophic moment in shattering lender or institutional confidence in the sector – there’s no other way of looking at it.”

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