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Balfour Beatty PLC (BBY)

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Monday 10 June, 2013

Balfour Beatty PLC

Update on UK Construction Business

RNS Number : 6210G
Balfour Beatty PLC
10 June 2013
 



10 June 2013

 

BALFOUR BEATTY PROVIDES PROGRESS UPDATE ON UK CONSTRUCTION BUSINESS

 

Balfour Beatty, the international infrastructure group, today provides an update on progress made in its UK Construction business (CSUK) following the internal review announced on 29 April 2013.

 

Appointment of CEO for CSUK

 

Nick Pollard will join the Group on 17 June as CEO for CSUK.  Nick has over 30 years' experience within the infrastructure market, including COO of Navigant Consulting's Global Construction practice, CEO of Bovis Lend Lease UK, EVP at Skanska plc and senior roles with Network Rail. He has held many independent advisory positions including those with Transport for London, the London Mayor, BIS and the Cabinet Office. Nick has direct hands-on experience of leading performance turnaround in construction businesses and major projects.

 

Andrew McNaughton, Group CEO, said; "I am delighted to welcome Nick to the team.  He has strong operational experience across our industry with existing relationships with many of our key customers. Nick's focus on enhancing performance in mainstream construction, in the UK as well as overseas, combined with his advisory roles for investors and government will be invaluable in bringing fresh ideas to the CSUK business and broaden the skills of the senior management team."

 

Nick Pollard commented "Balfour Beatty is a great company and a strong brand.  I am looking forward to the opportunities and challenges that trading successfully through tough market conditions always brings to construction companies.  It will be a privilege to lead that team and help it build a better and stronger business. "

 

Nick's appointment is one element of the plan that has been developed to drive stronger profitability in the UK Construction business.  The plan includes areas such as operational excellence, customer focus and addressing the issues in the Regional business.  

 

Rationalisation of Regional business units

 

Within the Regional business a review of the viability of the 21 delivery units has been an area of particular focus.  At our location in Dartford we have advised employees of our proposal to close this location due to a combination of insufficient construction activity and a disproportionately high cost base.  This could result in a small number of job losses and the relocation of individuals.  In the South West we are actively addressing specific operational issues across a handful of projects. 

 

As part of the wider business review, we have also identified that two smaller locations in Rochdale and Doncaster are no longer sustainable and again, employees have been advised of our proposal to close these offices. These three locations collectively account for around 8% of the UK Regional business which generated £1.5 billion of revenue in 2012.

 

ENDS

 

Analyst/investor enquiries:

Basak Kotler

Balfour Beatty plc

Tel. +44 (0)20 7216 6924

 

Media enquiries:

Rebecca Salt

Balfour Beatty plc

Tel. +44 (0)20 7216 6865

 

Notes to Editors:

 

1. We are currently undertaking consultation processes at three office locations - Dartford, Rochdale and Doncaster - each employing between 50 - 90 people. It is too early to confirm the total number of redundancies that could be affected should we go ahead with these proposals. During this process, Balfour Beatty will explore all available options for the redeployment of employees across the regional business and the wider Balfour Beatty Group.

 

2. Balfour Beatty (www.balfourbeatty.com) is an international infrastructure group that delivers world class services essential to the development, creation and care of infrastructure assets; from finance and development, through design and project management to construction and maintenance.

 

Our businesses draw on more than 100 years of experience to deliver the highest levels of quality, safety and technical expertise to our clients principally in the UK, the US, Southeast Asia and the Middle East. We continue to develop our business in key growth markets in South Africa, Australia, Canada, Brazil and India.

 

With proven expertise in delivering infrastructure critical to support communities and society today and in the future, our key market sectors include transportation (roads, rail and aviation), power and energy, mining, water and social infrastructure such as hospitals and schools.

 

Balfour Beatty employs 50,000 people around the world.


This information is provided by RNS
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