May 22, 2018 / 6:32 AM / 2 years ago

Galliford Try warns of extra costs for Aberdeen project, share fall

(Reuters) - British construction company Galliford Try Plc (GFRD.L) said it will have to spend more to build Aberdeen’s new ring road due to weather-driven delays but the cost will be below 25 million pounds that it incurred in the first half.

Share of the company were down 2 percent at 952.5 pence at 0704 GMT.

The company had said in February the liquidation of its project partner Carillion Plc had added to the cost overruns and increased its cash commitment for the project by over 150 million pounds.

Galliford, along with Balfour Beatty (BALF.L), is striving to complete the project following the collapse of Carillion, which was a major partner in what is one of Scotland’s biggest motorway construction projects of recent years.

In April, Galliford raised 158 million pounds of additional funds through a fully underwritten rights to cover the costs of the joint venture.

Galliford said in a trading update that it expects to achieve a full-year result in line with the current range of analysts’ expectations.

In a separate trading statement, Balfour Beatty said there was no change to the 105-120 million pounds cash outflow guidance for 2018. Completion of the project is anticipated this summer, the companies said.

Reporting by Radhika Rukmangadhan in Bengaluru; Editing by Arun Koyyur

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