黑洞社区

Contractor Balfour Beatty expects the UK construction market to remain sluggish over the next year and has not ruled out further restructuring as part of a drive to find 拢50m in annual savings.

Andrew McNaughton, Balfour Beatty鈥檚 chief operating officer, said there were 鈥渘o signs鈥� that difficult conditions in the UK were easing or the economy was growing and it was 鈥渉ighly unlikely that we are going to see significant upturn in 2012鈥�.

Speaking to 黑洞社区 after the firm posted its latest financial results, McNaughton said the firm expected its construction profit margins, which fell from 3% to 2.4% from 2010 to 2011, would fall further this year, bottoming out at about 2% in a 鈥渃ompetitive environment鈥�.

He said: 鈥淚 don鈥檛 see there鈥檚 going to be an upturn in 2012. Is it going to be in 2013? Possibly. But there is no one thing you can hang on and say there鈥檚 a real sign that things are growing.鈥�

Balfour Beatty鈥檚 construction arm was the only part of the business not to see a rise in profits last year, with the firm pointing to lower public spending and a highly competitive market eroding margins.

The results for the year ended 31 December 2011 showed operating profit for its construction arm fell 16% compared with the previous year to 拢169m, with a fall in the firm鈥檚 order book for construction from 拢9.2bn in 2010 to 拢8.5bn last year.

However, revenue across the firm鈥檚 construction arm was up 5% to 拢7.05bn.

Overall, Balfour Beatty鈥檚 pre-tax profit rose 22% to 拢246m on the back of a strong performance from the professional and support service businesses. Revenue across the group was also up 5% to 拢11bn.

The firm said it would seek to find 拢50m in annual efficiency savings across the group by 2015 and McNaughton said the firm was looking at further restructuring within the UK, following the creation of a centralised back office in Newcastle. He did not rule out merging divisions or reducing reporting lines across the firm鈥檚 UK operations.

鈥淲e鈥檙e inevitably looking at how we can drive more efficiencies. It鈥檚 hugely understandable that people are saying there鈥檚 a restructure going on. Well yeah, you know, it鈥檚 something we are always looking at,鈥� he said.

McNaughton said the firm would focus on continuing to grow its infrastructure business, with a focus on energy, waste and rail.

Asked if the firm would follow rival contractor Morgan Sindall鈥檚 move and merge its construction and civils arms, McNaughton said: 鈥淲e鈥檙e not going to follow anyone. We鈥檒l do what鈥檚 right for our business. Do we reduce reporting lines? Well, businesses change, businesses move. But we鈥檙e not going to follow Morgan Sindall.鈥�