18th Apr 2007 07:10
Balfour Beatty PLC18 April 2007 18 April 2007 METRONET UPDATE =============== Balfour Beatty's 2006 accounts reflect the performance of its investment inMetronet and of the downstream contracting work carried out to date. Metronet's finances are under increasing pressure as a result of the high levelof unanticipated costs which have been and continue to be incurred and thecontinuing absence of a commercial settlement with LUL in respect of thesecosts. As a result, the likelihood of a lengthy extraordinary review, underwhich the Arbiter would advise on the attribution of these unanticipated costs,with its attendant uncertainties, has increased significantly. The carrying value (£59 million as at December 2006) of Balfour Beatty'sshareholding in Metronet will continue to be under review as the parties seek anappropriate way forward. Balfour Beatty has invested a further £13 million sinceDecember 2006 and is committed to investing a further £19 million in the future.Full provision for any anticipated losses in respect of contracting workperformed by Balfour Beatty and its affiliated companies was made in 2006. ENDS Enquiries to:Tim SharpTel: 020 7216 6884www.balfourbeatty.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Balfour Beatty