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Where next for Carter and Carter?

publication date: Mar 2, 2008
author/source: Ed Tranham

The future continues to look bleak for Carter and Carter despite recent shareholder approval to extend the troubled company’s borrowing limits. Twelve months ago, net indebtness at C&C was £86m. Today it is £129m and is expected to peak at £175m before the end of C&C’s financial year in July 2008. Conversations are continuing with C&C lenders to restructure the business – an announcement is due in a week or so.

At the same time the accounts for the year ending 31 July 2007 remain to be finalised as external lawyers continue to investigate the company’s funding claims to the Learning and Skills Council for the same period. Substantial write-downs of goodwill are expected, questioning the merit of C&C’s acquisition policy.

C&C’s shares have been suspended since October and unless the company’s lenders come up with a realistic rescue package it is unlikely the shares will ever be re-listed. And it was only 12 months ago that C&C offered 725p per share to acquire BPP.

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