Killik Explains: Carillion's collapse - six investing lessons

This week I look at six red flags that investors should take away from the messy collapse of one of the UK’s biggest construction companies.

[@jd9720]

Big fan of you Tim keep up the great work, they don't teach this stuff in school!

[@Harihar_Patel]

They should teach personal finance and investing in school. I only learnt from university and then reading everything buffett said.

[@harveymoment]

Man there's a lot of great stuff in this video, I know it's been 6 years but would you do more of these case studies?

[@Harihar_Patel]

Debt is the killer of all businesses, expanding businesses with debt is a two edged sword. When debt rises and cash flow slows down, you are stuffed.

[@michaelwu8153]

Another brilliant video. Please keep it up!

[@TheMr3742]

glad you're doing videos again!

[@Harihar_Patel]

This channel should be far bigger, the content is outstanding. Do some advertising Killik & Co!

[@Arsenal-81]

Great video. Same thing happening to Kier at the moment.

[@dee8558]

Don't forget accrual accounting = smog machine for cooking the books

[@alexandroshadjigeorgiou2740]

Why the peaked price with high dividends considered a red flag?

[@tgk300xx4]

Paying large dividends, borrowing money for aquisitions when cash flow wasn't great and profit was amazing, is a red flag.

[@-_-O]

As a former analyst for Carillion I can say they were in trouble way before any investor would have been aware

[@KillikFinanceVideos]

Thanks Adam. Were there other specific indicators you were following? Be interested to know - feel free to ping me an email. Cheers, Tim

[@-_-O]

@@KillikFinanceVideos I always pass Killik & Co in Richmond and wonder if you guys have any jobs going.

[@KillikFinanceVideos]

Drop in and have a chat with Ian King there - sure he'd be happy to at least have a conversation.

[@Dwightstjohn-fo8ki]

Carillion bought my company, VanBots Canada, and I hadn't ever heard of them. 2012. Turns out they were just trying to keep the "kash fro" going. VanBots does nothing but hospitals, schools, and institutional work: always busy, no matter the economy. I was told Carillion was based in "the midlands" of England. WHAT?? Uh, No., didn't pass the smell test with me.

[@billyb6001]

Like GE in america?

[@abc33944]

the bosses were probably shorting it....

[@THEL1NK1N]

I implore you not to insult those of us who live in paper bags my good sir!

[@dawidchmielewski2391]

Such a smart englanderoo. As an accountant in this country, do you need to pass a basic maths test?

[@barryjatkinson]

meaningless fines. They should be in prison.