Balfour confirmed in its results today that “Engineering Services has stopped bidding external work in London, South East and the South West.”
The division currently has 12 M&E contracts live across the region with the last set to finish in January 2016.
The move follows a torrid year at the Engineering Services division which ran-up an £88m loss last year on a turnover of £62m on non-underlying contracts.
Chief Financial Officer Duncan Magrath said the losses had been on an “extraordinary scale” due to 49 problem contracts.
Chief executive Leo Quinn described M&E as a “painful business to operate in” but attributed Balfour’s problems to contract terms rather than endemic issues at the company.
Engineering Services is part of the larger Construction Services division which slumped to a total £391m loss in 2014.