Lack of public projects and fierce competition in regional markets blamed for 23% drop in UK construction revenue
Balfour Beatty鈥檚 UK construction arm has reported a 23% fall in revenue in the first four months of 2013.
In an update to the City the firm said the poor performance in the UK had been responsible for a 11% drop in the group鈥檚 construction revenues, when compared with the same period of 2012.
It said the UK market continued 鈥渢o be adversely impacted by the shortage of major public projects and fierce competition in the regional markets鈥�.
Balfour Beatty said the UK construction business was expected to break even in 2013.
In April the firm issued a 拢50m profit warning for the UK construction business, which followed a warning in its full-year results that it expected to bring in revenue around 拢2.55bn, down 20% from its revenue in 2012.
This morning the firm said: 鈥淎s we progress through the year, our business is expected to benefit from the cost efficiency programmes we have in place, a recovery in operational performance in UK construction and the ongoing implementation of strategic initiatives.
鈥淏ased on these dynamics and the first half weighting of the profit shortfall in UK construction, we expect our profits to be more heavily skewed to the second half than in previous years.鈥�
However, Balfour Beatty鈥檚 US construction business reported 鈥渟table鈥� revenues and a 鈥渟trong order book鈥� and the firm said it鈥檚 Dubai and Hong Kong arms were also on track to deliver management鈥檚 expectations.
It said that signed orders in the US had helped it increase its group order book by 5% over the period.
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