Market wrap: Balfour Beatty sinks after London snub
FTSE 250 Balfour Beatty recorded one of sharpest declines on the market on Thursday.
The construction firm sank 2.8%, after a 7% dive yesterday, taking it to 288p.
The fall came despite half-year results on 18 August revealing a return to profit and revenue climbs, but a write-down on central London resi.
FTSE 250 Balfour Beatty recorded one of sharpest declines on the market on Thursday.
The construction firm sank 2.8%, after a 7% dive yesterday, taking it to 288p.
The fall came despite half-year results on 18 August revealing a return to profit and revenue climbs, but a write-down on central London resi.
Balfour Beatty is the latest builder to blacklist London, following Redrow last year, with many others moving to the regions and suburbs.
In the results, group chief executive Leo Quinn said the company would continue to “reshape” to “play to its strengths”, notably adding “in markets where governments are committed to long-term infrastructure programmes”.
Following “performance issues” in central London projects, the firm has had to reassess and write-down its forecast. Quinn said: “Balfour Beatty will no longer bid for fixed-price residential property projects in London.”
Elsewhere, most residential developers recorded drops, reversing gains in trading yesterday. Redrow dipped 1.9%, after a surge fuelled by takeover rumours.
Savills continued to impress, climbing a further 0.9% to a new all-time high of 1,401p.
The FTSE 100 fell 1.5% to 7,059 and the FTSE 250 dropped 1% to 23,607.
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Photo: Oleg Gamulinskiy Pixabay
