Balfour Beatty takes Carillion hit as profits more than double

'Working within capabilites'
'Working within capabilites'

Construction giant Balfour Beatty has reported annual profits more than doubling despite a £44 million hit from the collapse of Carillion.

The group behind the Crossrail project has reported underlying pre-tax profits of £196mn for 2017 - up from £69mn the previous year.

Its profit leap comes even though it took a £44m charge on the delayed Aberdeen Western Peripheral Route (AWPR) - a joint venture with Carillion and Galliford Try, which is now due to complete in the summer.

The group also said it had hired more than 150 employees following the Carillion liquidation, taking on staff who had worked alongside Balfour on a number of joint ventures.

Boss Leo Quinn said the results “clearly demonstrate that our build to last programme is transforming Balfour Beatty”.

Pre-tax profits jumped to £117m from £10m a year earlier, while the UK construction arm posted operating profits of £16m against 2016 losses of £65m.

The results show the order book fell once again, down 8% at £11.4bn, with Balfour putting it down to an ongoing drive for “selective bidding at appropriate terms for those projects best aligned with its capabilities”.

Shares lifted 2% after the results.