LONDON (Reuters) - Shares of UK construction services firm Carillion (L:CLLN) slumped again on Tuesday with a profit warning, suspension of dividends and a CEO departure now wiping out half the company's value in two sessions.
A build-up in accounts receivable - or money owed to the company by clients - along with a burgeoning pension deficit and a bloated balance sheet have soured sentiment on Carillion and made it one of the UK's most heavily shorted stocks.
Stifel, one of the last remaining brokers with a "buy" rating on the stock cut its rating to "hold" warning, however, that its rating "requires belief that assets and liabilities are now fairly stated".
A stretched balance sheet suggests any capital shortfall will likely be met by a dilutive equity capital raise.