Balfour turnaround gathers strength

● Boss says failure of rival Carillion has helped rest of construction sector

He added that the Government – a key customer to Carillion – also needed to change the way it procured infrastructure projects and should “pre-qualify” suppliers on the strength of their balance sheets.

“Fundamentally, the Government gives very little credence to the quality of your balance sheet. You could be bidding against two men and a white van, and it’s almost seen as a level playing field.

“It’s quite clear that can’t continue, and buying at the lowest price doesn’t actually mean you get delivered what you think you bought,” Quinn said.

By contrast, Balfour said in its statement yesterday: “The business increased bid margin thresholds… coupled with a lower risk profile, so that the group wins work at appropriate terms and conditions.”

Its UK construction business reported an operating profit of £16m in 2017, bouncing back from a £65m loss in 2016. The company declared a total dividend for last year of 3.6p, up from 2.7p in the previous 12 months.

Balfour employs some 2,000 in Scotland, and other major projects it is involved in north of the Border include the recently completed Elgin High School and the redevelopment of Dorenell wind farm in Moray.