November 7, 2018 / 1:30 PM / 13 days ago

Galliford warns of more costs to build Aberdeen ring road

FILE PHOTO - Construction work takes place on the Aberdeen Western Peripheral Route, Scotland, August 1, 2017. Photograph taken August 1, 2017. REUTERS/Russell Cheyne

(Reuters) - Construction firm Galliford Try Plc (GFRD.L) expects to spend 20 million pounds more to complete the Aberdeen Western Peripheral Route contract, it said on Wednesday, as some repairs get delayed by bad weather.

The company also pushed the completion of the 550-million-pound project to December from its previous summer deadline, blaming “increased complexity” and weather delays in carrying out repairs to the bridge over the Don River.

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

Galliford warned in May it would have to spend more to build the ring road.

The final impact of the costs on its financial results will be determined by the result of a claim from its client, with whom “constructive” talks are ongoing, the company said in Wednesday’s statement.

Galliford said in February the Carillion’s liquidation had added to the cost overruns and increased its cash commitment for the project by over 150 million pounds.

Its shares were down 1.73 percent at 877.07 pence at 1345 GMT.

Reporting by Sangameswaran S and Noor Zainab Hussain in Bengaluru; Editing by Sai Sachin Ravikumar

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