Member Article

Balfour Beatty warn profits will be significantly lower

Construction group Balfour Beatty have warned that profits for 2013 are likely to be “significantly” lower than expected.

The firm say it has been difficult to win and execute work in the UK construction market, and market conditions deteriorated significantly in the second half of 2012.

Changes to procurement have meant customers are imposing increasingly stringent conditions onto contractors, the firm say.

A trading update said: “The Group’s latest monthly business reviews highlighted some poor performance in the UK regional construction business, and to a lesser extent the building part of the major projects business, which led to an internal review.

“This internal review has concluded that the combination of a difficult external environment and internal reorganisation has resulted in specific instances of poor operational delivery.”

Balfour Beatty CEO, Andrew McNaughton, is putting an action plan in place to address operational issues.

This was posted in Bdaily's Members' News section by Tom Keighley .