Balfour Beatty share price down on FTSE 250 after London Underground deal announced
Shares in Balfour Beatty were down on the FTSE 250 in morПing trading, despite the construction company saying it had secured a five year contract worth ?220 million with London Underground.
The contract will see Balfour Beatty perform track renewal work for London Underground. The work will include the replacement of ballasted track, points, crossings, ancillary signalling and drainage.
Balfour Beatty will receive around half of the ?220 million worth of work, which will begin next spring.
Ian Tyler, Chief Executive of Balfour Beatty, said, «We are delighted to be continuing our relationship with London Underground. We are very pleased to be part of such a crucial project, working in partnership with London Underground to deliver a world-class transport system for London.»
David Waboso, Capital Programme Director at London Underground, said, «It is vital that these works are carried out not only to maintain the continued safe operation of the Tube but also to modernise it.
«With the introduction of a new fleet of 191 air-conditioned trains and a new signalling system on the Metropolitan, District and Hammersmith & City lines the track has to be ready for an increase in usage of up to 40 per cent.
«CombiПing both track renewal and drainage works will mean that the work will be carried out more efficiently.
«Balfour Beatty tendered detailed proposals for reducing costs and we will work closely with them to achieve efficiencies and drive down costs.»
By 09:20 shares in Balfour Beatty were down 0.55 per cent on the FTSE 250 to 307.30 pence per share.