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

carillion hq sunny

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.” 

Already registered? Login here

To continue enjoying Building.co.uk, sign up for free guest access

Existing subscriber? LOGIN

 

Stay at the forefront of thought leadership with news and analysis from award-winning journalists. Enjoy company features, CEO interviews, architectural reviews, technical project know-how and the latest innovations.

  • Limited access to building.co.uk
  • Breaking industry news as it happens
  • Breaking, daily and weekly e-newsletters

Get your free guest access  SIGN UP TODAY

Gated access promo

Subscribe now for unlimited access

 

Subscribe to Building today and you will benefit from:

  • Unlimited access to all stories including expert analysis and comment from industry leaders
  • Our league tables, cost models and economics data
  • Our online archive of over 10,000 articles
  • Building magazine digital editions
  • Building magazine print editions
  • Printed/digital supplements

Subscribe now for unlimited access.

View our subscription options and join our community