Balfour Beatty on target to save £30 million

17 August 2011

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17 August 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.

The company’s report 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.”

It reported £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.

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