INFRASTRUCTURE group Balfour Beatty’s UK construction revenues fell 23 per cent in the first quarter, due to a continuing competitive market.
The UK marketplace “continues to be adversely impacted by the shortage of major public projects and fierce competition in the regional markets”, said the FTSE 250-listed firm today.
Total construction revenue declined by 11 per cent.
Revenue from mainland European rail operations, which Balfour Beatty plans to divest, declined 24 per cent in the quarter.
However, trading in other businesses is broadly in line with expectations.
“As we progress through the year, our business is expected to benefit from the cost efficiency programmes we have in place, a recovery in operational performance in UK construction and the ongoing implementation of strategic initiatives,” the company said.
“Based on these dynamics and the first half weighting of the profit shortfall in UK construction, we expect our profits to be more heavily skewed to the second half than in previous years.”