Balfour Beatty sees regional contracting uplift

Aaron Morby 10 years ago

Balfour Beatty’s regional construction businesses are reporting a recovery in activity.

But much of the uplift is being offset by a lack of orders at its major projects division.

In a mixed trading statement this morning Balfour also warned its UK rail projects business would deliver a modest loss over the year.

It also said that the outlook for its engineering services division, which relies on major infrastructure and complex buildings for growth, remained subdued.

Across the group, the firm  remained on course to exceed market expectations for 2013, helped by sales of investments, its FM business disposal and streamlining of UK operations.

“We expect the ongoing recovery in the housing market to feed through into increased work for our regional business, in particular our regional civils business.

“However, we need to remain vigilant about cost escalation and the risk of subcontractor failures as their balance sheets will come under increasing pressure due to increasing working capital requirements as and when their volumes pick up,” the firm said in its statement.

It warned that the uplift at Mansell and its regional civil engineering side in the third quarter would be offset by a failure to secure major road and civils work.

“In the major projects business, there continues to be an absence of large infrastructure projects.

“The visible pipeline looks weak, and we see little prospect for change in the next couple of years. We therefore anticipate a continuing shift in our business mix away from major infrastructure and into regional work.”

Balfour said profitability in construction services improved in the third quarter in line with expectations.

Trading at the professional services business remained stable after gains in transportation, Asia and the Middle East were offset by a deterioration in work and prices in Australia.

Balfour said it had disposed of 75% of its interest in the Carlisle Northern Development Route and 65% in A30/A35 road to Equitix for £47.5m.

It forecast its net debt at the end of the year would stand at £350m or £200m after taking account of proceeds from the sale of Balfour Beatty Workplace.

Latest news

Contractors and unions agree Sizewell C working deal

New deal offers improved sick pay and parental leave over Hinkley Point deal
6 hours ago

Competition chiefs win legal fight for more construction raids

High Court rules CMA officials can raid a domestic property as part of investigation
13 hours ago

More Osborne companies file administration notices

Three more divisions lodge notices with court
20 hours ago

McLaren wins multi-storey urban logistics contract

South London win with British Land is pioneering urban logistics hub
19 hours ago

Big social housing schemes at risk over funding uncertainty

Housing associations warn uncertainty over public funding beyond 2026 is curbing new schemes
19 hours ago

Kier wins Worcestershire town centre renewal

Firm secures Bromsgrove commercial and cultural hub project
19 hours ago

BAM signs Kent school contract at £42m

Sevenoaks school rebuild signed off at £8m more than first estimates
19 hours ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
4 days ago

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
4 days ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
4 days ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
4 days ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
4 days ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
4 days ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
5 days ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
5 days ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
6 days ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
5 days ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
5 days ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
5 days ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
5 days ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
5 days ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
6 days ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
6 days ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
6 days ago

New scheme fuels London lab building boom

Plans in for 160,000 sq ft Whitechapel scheme near Royal London hospital
6 days ago

Contract race starts for next £155m section of A9 dualling

Prior Information Notice published for Tay Crossing to Ballinluig stretch
6 days ago

£55m Sheffield build-to-rent scheme approved

Demolition to start later this year for 158-flat Sheffield Garden project
6 days ago

London back as most expensive place to build in world

Capital leapfrogs Geneva to top costliest construction rankings
7 days ago

Gas supplier Regent to buy TClarke for £90m

£491m turnover listed building services specialist to be sold
7 days ago

Steel contractor Billington launches into bridge market

Steelwork firm hires staff from failed architectural and bridge specialist SH Structures
7 days ago

Contractor services