The proposed mega-merger between Carillion PLC and Balfour Beatty failed to materialise, yet neither company is wasting any time licking their wounds.
In August, Carillion reported a five per cent drop in half-year revenues shortly before the deal hit the rocks, but insisted it was “well positioned” to target revenue growth for the full-year.
And in a third quarter interim statement released this morning, the FTSE 250-listed support services company reaffirmed the group’s “robust balance sheet” and “strong cash flow” as trading stayed in line with expectation.
Meanwhile, infrastructure group Balfour Beatty today announced it was embarking on three new projects, while disposing of its 50 per cent interest in the Pinderfields and Pontefact Hospital PPP project in West Yorkshire.
Ian Rylatt, CEO of Balfour Beatty Investments, said:
We continue to see a strong pipeline of opportunities and therefore, in line with our strategy of recycling equity, the proceeds will be invested in new projects as we continue to diversify our business.
Earlier this week the company issued its fifth profit warning in a year, with its share price tanking 20 per cent on the news. Auditor KPMG is to conduct an independent review of its construction arm Construction Services UK.
A potential £3bn merger between Carillion and Balfour came to a halt due to a dispute over the latter’s sale of design consultancy arm Parsons Brinckerhoff.