Britain's banks present help for companies hit by…

Perennial to support landscapers and horticulturists affected by Carillion collapse
UK needs to give firms more time to save jobs linked to Carillion: union
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19 January, 2018

"We are in regular discussions with all these companies regarding their financial position", she said.

Interserve's shares, which had earlier this week had recovered more than 80 per cent from a decline in December, fell more than 11 per cent in early trade on Wednesday but had rebounded a little to 115.75p by 0830 GMT, a fall of just over 4 per cent.

Interserve is a major supplier to the government across sectors.

A Business Department spokesperson said: "We have created a task force to continue to support and monitor the impact on small businesses and employees who have been affected by Carillion's insolvency".

The group issued a warning about its results in September following weak trading last summer.

"We know how critical it will be for businesses within Carillion's supply chain to receive support with their cashflow, to help them through the temporary challenge to their business", said Gareth Oakley, MD of SME Banking, Lloyds Bank Commercial Banking.

This prompted a string of profit warnings and a first-half loss of more than £1 billion.

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A spokeswoman for Britain's Cabinet Office played down the report.

Soros benefitted before from short-selling the construction giant when his SFM UK Management shorted Carillion stock in the summer, allegedly earning the hedge fund $2.5 million from its short position.

Neil Wilson, senior market analyst at ETX Capital, said Interserve had had its problems but was "no Carillion".

A spokesman said the banks withdrew funding from Carillion because of "viability", adding: "There are reasons the Carillion situation happened".

Jon Trickett, Labour's Cabinet Office spokesman, questioned why the government awarded three contracts to the group previous year despite it being government policy to designate a company as "high risk" if it had issued a profit warning.

"Its latest update showed improvement and the news will do no good for sentiment given there may be some twitchiness among investors in the sector following Carillion's collapse".

"The time is up on the few profiteering at the expense of the many".


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