Balfour Beatty announced a 14% jump in underlying profits yesterday, saying the performance was boosted by growing its business outside the UK.
The London-based firm – one of two lead contractors that delivered Aberdeen’s city bypass earlier this year – said underlying pre-tax profits surged to £64 million in the six months to June, compared with £56m a year ago, as it was buoyed by a strong order book.
Revenue grew more marginally, rising to £3.88 billion in the latest half year, from £3.84bn.
The FTSE 250 company said decisions to proceed with the HS2 high-speed rail network and the expansion of London Heathrow Airport would significantly improve its outlook.
It has also won a £26m contract to renovate Union Terrace Gardens in Aberdeen.
Balfour Beatty said the final financial “out-turn” of the Aberdeen Western Peripheral Route (AWPR) contract “remains dependent upon the result of ongoing claims discussions”.
AWPR partner Galliford Try has warned it is ready to take legal action if talks with the Scottish Government do not “reach a satisfactory conclusion”.
The official price tag for the AWPR came in at £745m, which included a contract worth about £530m to the development consortium Aberdeen Roads.
But the main contractors have reported hefty losses on the project and these, together with operation and maintenance costs over a 30-year period, suggest the true cost has soared beyond £1.5bn.
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