Carillion is among the most shorted shares on the London market and a first glance at the 2016 results gives an understanding why. Margins deteriorated, debt ballooned and the pension deficit was significantly higher.
Take a second look and things seem a little brighter. Margins at the construction side, in the Middle East and elsewhere, are running at between 2 and 3 per cent and are not going to get a lot higher. Support services, the biggest part of Carillion and the bit that looks after roads, railways and other assets, dipped below 6 per cent, though they should be back above that level this year.
Debt rose from about £170 million to almost £220 million at the year end, averaging almost £590 million through