Contractors focus on support services
15 August 2012
Contractors Balfour Beatty and Interserve have published their first-half results for 2012, with construction profits falling as they turn their attention to longer term support services contracts.
Balfour Beatty’s results revealed overall pre-tax profit for the six months to 29 June 2012 grew by just 2% compared to the same period last year. Construction services saw a £37m profit from operations during the period, compared with a £51m profit in 2011.Support services also saw a decline, from £22m last year to just £4m this year – however the firm said the fall was largely caused by a “skewing of profits to the second half due to mobilisation costs on recent contracts”.
Interserve, too, saw a marked decline in its construction operations, as the construction market continues to struggle in the UK. Its construction business suffered a 27% slump in its total operating profit in the UK, whereas its support services arm enjoyed a 23% increase.
The firm’s overall profit before tax – which increased by 8% to £32.6m – was boosted by the disposal of PFI assets to realise a cash value of £35m.
“We have delivered a good set of results against a backdrop of continuing mixed market conditions,” said Interserve chief executive Adrian Ringrose.
