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The troubles at Balfour Beatty have intensified this morning as the firm announced a fresh 拢75m profit warning.

In a trading update Balfour Beatty said 鈥渋nternal reviews conducted in recent days鈥� had identified a 拢75m profit shortfall in the UK construction business 鈥渄ue to additional losses and write-downs across a number of contracts鈥�.

It is the fifth profit warning issued by the firm in less than two years and by far the largest. Balfour Beatty鈥檚 share price fell 20% on early trading this morning following the announcement.

The firm said the profit shortfall was split across the UK construction business, with 拢30m within the M&E business; 拢20m within large London area building projects; 拢15m within the regional construction business; and 拢10m within major infrastructure projects.

The firm said it had appointed KPMG to conduct a detailed independent review of the contract portfolio within the UK construction business.

that Mark Cutler, the boss of the firm鈥檚 UK regional construction business has left the firm after just eight months. The firm also said this morning that executive chairman Steve Marshall would step down from the board following the appointment of a new chief executive.

It follows a series of profit warnings at the firm and the collapse of merger talks with Carillion over the summer.

Balfour Beatty said the KPMG review would focus on 鈥渃ommercial controls, on 鈥榗ost to complete鈥� and contract value forecasting and reporting at project level鈥�.

The firm said KPMG would report back 鈥渂y the end of the year鈥�.

The firm said that in the M&E business the 拢30m write-down related 鈥渕ainly to previously highlighted problem contracts in London鈥�.

鈥淲e have continued to experience programme slippage, resource and skills shortages, poor operational delivery and cost inflation pressures,鈥� the firm said.

But it said the total number of the total number of problem contracts had increased from 21 to 25, of which 19 are due to reach operational completion in 2014.

Balfour Beatty issued a 拢30m profit warning in May - of which around 拢20m was focused on the M&E business - and a further 拢35m profit warning in July - all of which related to problems with the M&E business - and said it planned to reduce the 拢260m-turnover business by around a quarter by tightening its bidding criteria and stepping back from the London market. Today the firm said it was also withdrawing from bidding M&E work in the South-west.

The firm said the large London building projects, which have been transferred into the regional construction business, 鈥渉ave experienced further programme slippage and increases in cost to complete estimates鈥�.

鈥淭he new management team are working hard to resolve these issues, whilst recognising increased risk,鈥� the firm said.

Within the regional construction business, Balfour Beatty said it had experienced 鈥渃ontinued difficulties in the South West and Wales regions鈥�.

鈥淭hese were previously highlighted as risks and we continue to take steps to reduce our exposure in these regions, where we are in consultation with our employees in regards to office closures.鈥�

 It said that in its major infrastructure projects division the firm had 鈥渆xperienced cost forecast revisions on a small number of projects where we have experienced a change of scope, but where the commercial resolution is yet to be concluded鈥�.

Balfour Beatty said that its search for a new group chief executive, following the departure of Andrew McNaughton in May, was now at an 鈥渁dvanced stage鈥�, with an announcement to be made in due course.

The firm also said group chairman Steve Marshall, who has been acting as executive chairman until the firm appoints a new chief, will step down from the business following the appointment of a new chief executive and a new non-executive chairman.

Steve Marshall, Balfour Beatty executive chairman, said the latest latest trading update was 鈥渆xtremely disappointing鈥�.

鈥淭here has been inconsistent operational delivery across some parts of the UK construction business and that is unacceptable,鈥� he said.

鈥淩estoring consistency will take time and it has our full focus. The board is committed to delivering shareholder value and we are progressing against the priorities we set out over the last few months, including the sale of Parsons Brinckerhoff and the announcement shortly of a new CEO.

鈥淭he Group鈥檚 other operating divisions are trading as expected and the board continues to believe the standalone strategy will deliver value in the medium term.鈥�