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| Balfour Beatty suffers Metronet hit Balfour Beatty said its 2006 accounts reflect the performance of its investment in Metronet and of the downstream contracting work carried out to date. Metronet's finances are under increasing pressure as a result of the high level of unanticipated costs which have been and continue to be incurred and the continuing absence of a commercial settlement with LUL in respect of these costs. As a result, the likelihood of a lengthy extraordinary review, under which the Arbiter would advise on the attribution of these unanticipated costs, with its attendant uncertainties, has increased significantly. The carrying value (£59 million as at December 2006) of Balfour Beatty's shareholding in Metronet will continue to be under review as the parties seek an appropriate way forward. Balfour Beatty has invested a further £13 million since December 2006 and is committed to investing a further £19 million in the future. Full provision for any anticipated losses in respect of contracting work performed by Balfour Beatty and its affiliated companies was made in 2006. write your comments about the article :: © 2007 Construction News :: home page |