Balfour Beatty has announced today that its UK construction business is expected to deliver significantly lower profits from operations for 2013 than management’s expectations at the time of the full-year results announcement in March.
The firm said: “The UK construction market has been a challenging environment in which to win and execute work.
“Market conditions which deteriorated significantly in the second half of 2012 continue to be difficult. Change in procurement trends, which we have previously highlighted, have persisted, allowing customers to impose increasingly stringent conditions onto contractors.
“Our subcontractors continue to operate under considerable financial strain. In these extremely tough conditions, our UK construction business has been concurrently implementing a substantial organisational restructuring in order to streamline the business for future success while reducing costs to remain competitive.”
The remainder of the business remains on track in aggregate.