Balfour Beatty profit alarm
CONSTRUCTION group Balfour Beatty issued a fresh profit warning yesterday as it continues to count the cost of past contracts.
Retail development construction on a Balfour Beatty site
It said a review of its businesses continued to identify “legacy issues” in the UK, US and Middle East which will result in an additional shortfall of £120-150million.
Its domestic market makes up about two thirds of the shortfall. Shares in the FTSE 250 firm, which sounded four profit alerts last year, fell 8¼p to 220¼p.
Legacy challenges remain
Chief executive Leo Quinn, who promised a shake-up of the UK business after joining in January, said: “Legacy challenges remain. However, we are making encouraging progress on the group’s transformation.”
Balfour Beatty rejected takeover advances from Carillion last year and has since been the subject of rumoured Chinese bid interest.