Galliford Try is undertaking a strategic review of its construction business after issuing a fresh profit warning.
Further hits have been distilled on the completed Queensferry Crossing
The firm said it aimed to reduce the size of the construction business as it focused on key strengths in markets with sustainable prospects for profitability and growth.
Galliford Try warned it expected to report pre-tax profits £30m-£40m below previous forecasts, after final settlement on the £1.4bn Queensferry Crossing project.
Galliford Try’s joint venture with Dragados, Hochtief and American Bridge International had to meet costs of delays due to high winds on the Forth bridge project.
In a statement it said: “The board anticipates that this review will result in reduced profitability in the current year reflecting a reassessment of positions in legacy and some current contracts and the effect of some recent adverse settlements, as well as the costs of the restructure.”
It said the single largest readjustment related to the Queensferry Crossing joint venture, which has recently increased its estimated final costs on the project.
It said its position over the claim covering the completed Aberdeen Western Peripheral Route, and the £38m work in progress balance in respect of three contracts for a single client was unchanged.
The review will scrutinise contract positions throughout the construction business and assess operational progress. The outcome of the review over the next few weeks will be reported in a trading update in mid May.
