Balfour Beatty reports half-year profit slump
Balfour Beatty says its operations in the water market have continued to perform well during the first half of this year. It is also working with water companies "who are eager to manage the transition" to AMP6 without the unnecessary disruption caused by changeover.
The group has already won a contract worth a potential £1.5B with Thames Water in a three-way joint venture. While the 23-month early contractor involvement contract is in our order book, the vast majority is yet to be booked.
Similarly, Yorkshire Water extended its contract with Balfour Beatty to 2020, which is worth £70M.
However, Balfour Beatty has blamed underperformance in its UK construction business and market
deterioration in Australia for a 70% fall in underlying pre-tax profit to £45M for the half-year compared with the same period last year. Group turnover was down 3% at just under £5B.
Andrew McNaughton, the group's chief executive officer, said: "Our markets continue to be challenging, but our actions are delivering the intended results. With sustained focus on operational delivery, we expect to achieve a performance in our continuing operations that is in line with the current market expectations for 2013.
“In the longer term, our goal is to capitalise on the growth in global infrastructure from an international footprint of local businesses. The benefits from this focus combined with the impending recovery in some of our mature markets position us well for the future.”
Balfour Beatty's group order book has risen to £13.9B, with £5B worth of orders having been won in the first half of the financial year.
- Water bills set to rise to pay for infrastructure spend, warns NAO Water bills could rise significantly to pay for investment in infrastructure along with the costs of maintaining and... Read More >
- Amey wins £225M UU deal Amey's Network Maintenance Alliance contract with United Utilities (UU) has been extended until 2020. The £225M deal will... Read More >
- Wind energy is less demanding on water, says report Power plants are contributing to Europe's water scarcity, a new report published today by the European Wind Energy... Read More >
- Interview: Kier Utilities' water MD Nigel Dyer Kier Utilities' Nigel Dyer tells Robin Hackett how the company is evolving to meet the changing demands on the water... Read More >
- Comment: New tech and partnerships will up the ante on leakage Closer partnerships, technology and connectivity will be the key to tackling leakage, with collaborative delivery... Read More >
- The search for safer streetworks practices Amey Utilities' HSEQ director, Gerry Mulholland, explains how the company’s 2020 Challenge and Know What’s Below... Read More >
- In Focus: Health, safety and wellbeing at Lanes Group Having introduced an array of creative solutions to improve health, safety and wellbeing, Lanes Group is showing the... Read More >
- Meet the WIA Finalists: Water Industry Contractor of the Year In the run-up to the Water Industry Awards, WWT is taking a close look at the companies and initiatives that have made the... Read More >