This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-29406431
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Balfour Beatty's shares plunge on profits warning | Balfour Beatty's shares plunge on profits warning |
| (about 9 hours later) | |
| Balfour Beatty has issued another profits warning, compounding concerns over the UK's biggest construction group. | Balfour Beatty has issued another profits warning, compounding concerns over the UK's biggest construction group. |
| The company's shares fell sharply, closing 15.3% lower on Monday. | |
| Balfour Beatty said there would be a further shortfall of £75m this year in its UK construction services division, following two earlier profits warnings this year. | Balfour Beatty said there would be a further shortfall of £75m this year in its UK construction services division, following two earlier profits warnings this year. |
| The company is appointing accountants KPMG to review the contract portfolio. | The company is appointing accountants KPMG to review the contract portfolio. |
| 'Extremely disappointing' | 'Extremely disappointing' |
| The accountancy firm is to conduct a "detailed independent review" into costs and controls at projects within that division, which will report before the end of this year. | The accountancy firm is to conduct a "detailed independent review" into costs and controls at projects within that division, which will report before the end of this year. |
| The statement said Balfour Beatty had continued to experience "programme slippage" and "poor operational delivery" within some projects, including several London area building contracts. | The statement said Balfour Beatty had continued to experience "programme slippage" and "poor operational delivery" within some projects, including several London area building contracts. |
| "This latest trading statement is extremely disappointing," said executive chairman Steve Marshall in a statement. | "This latest trading statement is extremely disappointing," said executive chairman Steve Marshall in a statement. |
| "There has been inconsistent operational delivery across some parts of the UK construction business and that is unacceptable." | "There has been inconsistent operational delivery across some parts of the UK construction business and that is unacceptable." |
| Mr Marshall has also announced he is to step down from his role on the company's board. | Mr Marshall has also announced he is to step down from his role on the company's board. |
| In August, a £2bn takeover offer from rival Carillion was rebuffed after repeated approaches. | In August, a £2bn takeover offer from rival Carillion was rebuffed after repeated approaches. |
| Chairman to go | Chairman to go |
| Balfour Beatty is involved in projects such as motorway building, power stations and office block construction, as well as public private partnership projects, and operates in 80 countries worldwide. | Balfour Beatty is involved in projects such as motorway building, power stations and office block construction, as well as public private partnership projects, and operates in 80 countries worldwide. |
| But it is the UK construction services division where significant problems have been identified. | But it is the UK construction services division where significant problems have been identified. |
| Trading across the rest of the company remained in line with its expectations, the group said. | Trading across the rest of the company remained in line with its expectations, the group said. |
| In May, the company's chief executive Andrew McNaughton quit after it became clear profits would be lower this year. | In May, the company's chief executive Andrew McNaughton quit after it became clear profits would be lower this year. |
| The company said it was now close to appointing a new chief executive. | The company said it was now close to appointing a new chief executive. |
| Executive chairman Steve Marshall said he would step down, once a new chairman and chief executive had been found. | Executive chairman Steve Marshall said he would step down, once a new chairman and chief executive had been found. |