Monday 15 January 2018

Carillion collapse to cost Balfour Beatty £45m

Balfour Balfour has warned that the collapse of Carillion will hit it for up to £45m on joint venture projects.

The contractor is working with Carillion on three major road schemes in Scotland, the north west and East Anglia.

These include the loss-making the Aberdeen Western Peripheral Route, which was identified as one of Carillion big three legacy jobs – the £1.4bn A14 in Cambridgeshire and the £200m M60 Junction 8 to M62 Junction 20 scheme.

This morning Balfour issued a statement saying it would continue to work with its customers and would meet its contractual commitments.

It estimated the cash impact to Balfour Beatty was likely to be an outflow in the range of £35m-£45m in 2018.

The profit impact of Carillion’s compulsory liquidation would be recorded as an exceptional non-underlying charge in the income statement.

Balfour Beatty added that it did not have any other material financial exposure to Carillion.



from Construction Enquirer http://www.constructionenquirer.com/2018/01/15/carillion-collapse-to-cost-balfour-beatty-45m/

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