Contractor to record 拢25m loss on disposal of loss making group of businesses
Balfour Beatty has sold a group of loss-making German rail businesses to an Austrian firm.
The contractor has sold the group to Rhomberg Sersa Rail Group of Austria for 拢6m but it said the total cash consideration was zero once the cash transferred with the disposed group was taken into account.
It added that Balfour Beatty would report a one-off loss of around 拢25m as a result of the disposal.
In 2013 the German rail businesses generated around 拢80m in revenue but reported a pre-tax loss of 拢8m.
Six hundred employees will transfer over to the Austrian firm as part of the sale, which is due to complete in the first quarter of 2015.
Balfour Beatty also announced that it had sold its German Railroad Tuning Business for 拢1m, a figure it said 鈥渂roadly equating to net asset value鈥�.
Balfour Beatty will keep hold of some other parts of its German rail operations before selling them separately.
It said: 鈥淒iscussions with potential buyers for the remaining parts of the German and Italian rail businesses are ongoing.鈥�
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