Fresh problems for Ballast Nedam

Ballast Nedam has withdrawn its previous profits forecast for 2014, and will delay its results announcement until 24 April. It said the decision was due to new losses coming to light on two road building projects in the Netherlands.

The company said in November that it would make an operating loss of € 35 million to € 45 million for 2015. However it said in a statement it “Expects that the result will materially decrease compared to the previously reported expectations.”

The same statement said the company had received expressions of support from its banking syndicate - ING Bank, Rabobank and Royal Bank of Scotland – but that it was in discussions with them around changes to its financing arrangements.

The problem road projects are the A15 Maasvlakte-Vaanplein and A2 Maastricht, both in the Netherlands. Ballast Nedam had previously announced cost over-runs on the A15, but has now added they will be worse than previously thought. The newly discovered issue on the A2 project relates to the design of a tunnel and installation of equipment.