This week, the former finance chiefs of Carillion have been fined for misleading investors shortly before the company’s collapse
The former Carillion directors have been fined after failing to inform the market of the group’s poor financial condition, following a Financial Conduct Authority (FCA) investigation.
The collapse of the Carillion Group in 2018 left around 43,000 employees affected and revealed liabilities of almost £7 billion.
In 2016, Carillion was the second-largest construction company in the UK and caused shockwaves when it collapsed.
The directors have been found guilty of misleading investors
Both directors have been found to have known of the state of the company’s construction arm, but did not disclose the situation in market statements or notify the board or audit committee.
As such, Richard Adam has been fined £232,800, and Zafar Khan has been fined £138,900 after both dropped their appeals.
Khan had originally stepped down briefly before Carillion collapsed, and has been banned from holding any directorships for 11 years.
Steve Smart, the FCA’s joint executive director of enforcement, said: “Those in positions of responsibility have a duty to keep the market accurately and adequately informed. With Carillion, we have seen the serious impact it can have when they don’t.”
More recently, ISG fell into administration in 2024
During its collapse, 2,200 workers were immediately made redundant after the company failed to strike a deal.
At the time, ISG was the sixth largest construction firm in the UK with more than £1.15bn in public sector contracts, and revenues of around £2.2bn. The ripples were still felt a year later, as subcontractors did not receive payment for large projects and subsequently went under.
A statement from ISG’s administrators said: “Those in positions of responsibility have a duty to keep the market accurately and adequately informed,” said Steve Smart, FCA’s joint executive director of enforcement. “With Carillion, we have seen the serious impact it can have when they don’t.”
Glenigan economic director, Allan Wilen, said: “ISG’s demise is set to dampen overall industry workload in the near term as clients look for contractors to complete projects currently on site and as recently awarded projects are re-tendered. Its subcontractors and suppliers will be under increased financial pressure, and contractors nationwide will need to review and work with their own supply chains to minimise financial stress and avoid any additional loss of industry capacity.”
This is a stark reminder that large size does not equal safety in the construction industry, which is still suffering a high level of administrations and liquidations amongst its companies, as demonstrated by the size of our non-comprehensive list of companies that fell in 2025 alone.
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