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Carillion warns on full-year results, makes further provision

Sept 29 (Reuters) - British construction and support services group Carillion said on Friday it expects full-year results to be lower than market forecasts, as it booked a further provision relating to services contracts.

"This is a disappointing set of results which reflects the issues we flagged in July and the additional 200 million pound provision for our Support Services business that we have announced today. We now expect results for the full year to be lower than current market expectations," Keith Cochrane, Interim Chief Executive, said in a statement

Carillion, whose shares have lost two-thirds of their value since it announced a writedown in mid-July, said it was in talks to sell its Canadian and UK healthcare businesses and intended to raise 300 million pounds ($402 million) from disposals, up from a previous target of 125 million.

The company said its board is considering other options, including raising equity to repair and strengthen its balance sheet.

($1 = 0.7458 pounds)

(Reporting by Esha Vaish in Bengaluru; Editing by Alexander Smith)