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2011 | Angeline Albert
Construction firm Balfour Beatty’s half-year results show it is on track
to deliver its cost reduction goal of £30 million by 2013.
said the group’s UK Shared Service Centre, launched in August 2010, has helped
it make the most of its buying power though collaborative purchasing. CEO Ian Tyler said: “We now have procurement deals covering £150 million
of spend, creating gross annualised benefits of £15 million.”
£5.2 million in revenue in its financial results published today for the six months ending 1 July 2011, up from £5.1 million
for the same period last year.
It started implementing a major
cost efficiency programme in 2010 and has been rolling out procurement and back
office initiatives to help it reach its cost reduction target.
The report said: “Nearly a year
on from the UK government’s Comprehensive Spending Review, the impact of the
reduction in government spending is evident in UK infrastructure markets and
consequently in our UK order book. We have been adapting our business by shifting
our focus to where we see opportunities and by implementing our cost reduction
initiatives efficiently and without delay.”
The group also reported an
order book of £15.5 billion, up 6 per cent when compared with £14.6 billion in
June 2010. It said this was the result of US construction and support services
contract wins in 2011.