Balfour Beatty, the international infrastructure group, today announces the outcome of the arbitration process in relation to the previously highlighted longstanding contract dispute in its Professional Services division.
The arbitration process found in Parsons Brinckerhoff’s favour on a number of matters, but the overall award of US$8 million is significantly lower than management expectations.
Finalisation of this process allows us to settle all outstanding matters on the escrow account established at the time of the Parsons Brinckerhoff acquisition, subject to final agreement with the previous owners.
Overall, the contribution to the 2014 income statement is expected to be nil, which is £12 million lower than anticipated. We expect to receive net cash in excess of US$20 million, primarily from the escrow account.
Balfour Beatty plc
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Balfour Beatty plc
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Notes to editors:
Balfour Beatty (www.balfourbeatty.com) is an international infrastructure group that delivers world class services essential to the development, creation and care of infrastructure assets; from finance and development, through design and project management to construction and maintenance.
Our businesses draw on more than 100 years of experience to deliver the highest levels of quality, safety and technical expertise to our clients principally in the UK and the USA, with developing businesses in Australia, Canada, the Middle East, South Africa and South East Asia.
With proven expertise in delivering infrastructure critical to support communities and society today and in the future, our key market sectors focus on infrastructure - transportation (roads, rail and aviation), power and energy, water, and complex buildings (both commercial and social).
Balfour Beatty employs 40,000 people around the world.