Balfour Beatty announced in its trading update of Q1 2014 that the board has undertaken a strategic review, to explore ways to simplify the group structure and create a more focused group.
Balfour Beatty said that although there has been growth in the market towards design and build and Public Private Partnership contracts, having professional services and construction capabilities combined within one organisation has not delivered material competitive advantage for the group.
Steve Marshall, Balfour Beatty Executive Chairman, commented:
"Today's trading update is once again disappointing. The Board is committed to rapidly addressing the root causes. As a result, action is being taken to improve operational delivery in the UK construction business. Our recent strategic review meanwhile has concluded that a sale of Parsons Brinckerhoff could deliver attractive shareholder value and make Balfour Beatty a simpler and more focussed Group going forward."
Balfour Beatty also announced that Andrew McNaughton has stepped down as Chief Executive of the Group and as an Executive Director of the Board with immediate effect.
Balfour Beatty revealed that it expects a £30 million shortfall in our UK construction business in 2014. As a result overall group pre-tax profits for 2014 are expected to be significantly lower than previous expectations, in the range of £145 - £160 million.