Balfour Beatty, the infrastructure firm which recently issued a profit warning weeks after rejected a merger proposal from rival Carillion, is on the slide again.
Following news that its Blackpool International airport subsidiary would close, Balfour's shares are down 7.2p at 161.2p, as Westhouse Securities issued a sell note. Analyst Alastair Stewart said:
Balfour Beatty's 95% owned Blackpool International Airport announced last night it would close on 15 October after its owners failed to find a buyer. Balfour Beatty itself has not issued an RNS or corporate press release. According to the 2013 Balfour Beatty annual report, the asset, bought in 2008, had total project funding of £14m and goodwill of £4m. We are unaware what impact there will be on the P&L or of potential further cash costs of closure.
While the sums involved are modest and the outlook for regional airports is reported, including in the FT, to be poor, the failure to find a buyer may, in our view, provide a further concern to investors, since Balfour has indicated it will consider further disposals.
