Contractor Balfour Beatty witnessed a 12% increase in underlying pre-tax profit for the first six months of the year, its results revealed today.
The firm said that this figure had risen from £138M for the same period in 2011 to £154M in 2012, while group revenue went up 7% from £4.51bn for the same period last year to £4.83bn this year.
It also clarified details of the second phase of its efficiency drive, announced in March, that aims to make £50M of savings by 2015. In a statement the contractor said it had “already made good progress” on the plan.
The UK construction business is being rationalised with a new operating model based on just three business streams which will be up and running in January 2013. As a result, the number of employees in back office functions is being cut by around 650 and 35 of its 75 offices are to close. Redundancy costs for the period were £14M and the firm expects and the full cost of the efficiency programme is up to £75M.