Carillion disposes of Ask stakes for £13.8m

Carillion has sold its majority stakes in two commercial property development companies for £13.8m in cash to Dukehill.

The facilities management and construction services group has disposed of its 66.6% stake in Ask Real Estate and its 50% interest in Ask Carillion Developments.It said that £1m of the cash consideration is contingent on the sale of 100 Embankment and will be paid to Dukehill within five business days of the signing of the sale documentation.

For the 2016 financial year, the businesses contributed £4.1m of revenue, £11.6m of pre-tax profit and had £19.2m of gross assets as at 31 December.

Carillion said the transaction is expected to generate a modest profit on disposal and the interests being sold were not expected to make a material contribution to overall group profit for 2017. The transaction consideration will be applied in reducing the group's overall leverage position.

Interim chief executive Keith Cochrane said: "We are pleased to be able to announce further progress. Much remains to be done, and we are continuing to execute our plans to refocus the business, reduce cost and strengthen our balance sheet."

At 0828 BST, the shares were up 1.6% to 46.75p.