Balfour Beatty shares collapse on profits warning
British infrastructure giant Balfour Beatty saw its share price slump by more than a fifth on Monday after the latest in a series of profit warnings this year.
The company announced in a dire trading update that its British construction arm suffered another profit shortfall of about £75 million ($122 million, 96 million euros).
Balfour Beatty's shares collapsed 20.35 percent to 179.12 pence on London's second-tier FTSE 250 index, which was down 0.14 percent at 15,362.67 points around 1100 GMT.
That gave the group a market capitalisation of about £1.23 billion.
The news came one month after Balfour Beatty rejected a £2.0-billion takeover offer from smaller rival Carillion.
"This latest trading statement is extremely disappointing," Balfour Beatty executive chairman Steve Marshall said in Monday's statement.
"There has been inconsistent operational delivery across some parts of the UK construction business and that is unacceptable," said Marshall, adding that he intended to step down from the board.
The group has appointed accountancy firm KPMG to undertake a detailed review of the troubled division's contract portfolio.
© 2014 AFP