In its latest update to the City today, Balfour said it was still trading in line with management expectations in the wake of April’s £50m profit warning.

Balfour said: “In UK Construction, first-half performance has been weak as expected, and results have been further impacted by the £50 million profit shortfall announced on 29 April.

“Although the environment is still difficult in the UK, the losses expected in the UK construction business in the first half are expected to be recouped in the second half as the management team, led by the newly-appointed UK Construction CEO, focuses on improving operational performance.

“This, combined with the timing of the cost savings benefits, is expected to result in a broadly break-even position for the year as a whole.”

The Australian market is continuing to deteriorate following a series of contract cancellations.

Balfour added: “Our markets continue to be very challenging, and we continue to take action to mitigate the impacts on our business.

“Due to the timing of these actions and the anticipated recovery in the performance of the UK Construction business, we expect our profits to be significantly more skewed to the second half than in previous years, with the full-year result remaining in line with management’s expectations.”

Results for the half-year to 28 June 2013 will be announced on 14 August.