September 15, 2014, Balfour Beatty shares opened 20% lower following the company’s issuance of profits warning.
The company is the biggest construction group in U.K. It saw a significant fall on its shares when it opened Monday morning. The profits warning of Balfour Beatty has been its 5th since the year 2012 after the company decided against a union with Carillon, its close rival.
With the profits warning, the company also made a declaration that losses will extend in its services specifically the construction division as it’s expecting a £75 million drop in the next coming weeks. The profits warning and the trading updates are highly unsatisfactory that’s why the board has made its move –that is to a get a thorough review started across the company’s portfolio. Right now, KMPG accountants are reviewing the portfolio of Balfour Beatty.
In some parts of U.K, there’s been inconsistency going on in the area of operational delivery which is not acceptable. The company said that reestablishing its consistency in this construction business will not be very easy, that it’s going to take some time and full attention from the people involved.
Balfour Beatty chose Magnox to deliver the Solid Intermediate Level Waste Encapsulation contract worth £34 million at Hunterston. Meanwhile, Magnox will be working hard to achieve its goal on safely storing level waste.