Galliford Try has revealed plans to raise £150 million from investors due to cost overruns on the Aberdeen Western Peripheral Route (AWPR) project and the collapse of Carillion.

In its half-year report for the six months ended 31 December 2017, the contractor also announced a £25m exceptional charge with its Construction division arising from the demise of the now-defunct industry services firm.

Galliford Try, Balfour Beatty and Carillion form the Connect Roads consortium which was appointed to deliver the £745 million infrastructure scheme in 2014.

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However, the failure of Carillion leaves both Galliford Try and Balfour Beatty having to shoulder the costs burden.

The company said it has sufficient financial resources to meet its obligations on AWPR contract, including the estimated impact of Carillion's liquidation.

"However, this would involve diverting capital away from the Linden Homes and Partnerships & Regeneration businesses, thereby reducing their ability to capitalise on the material growth opportunities these businesses would otherwise be well positioned to exploit," the Board said.

Peter Truscott, Chief Executive, said: "We have reviewed the impact on our business from the compulsory liquidation of Carillion, which has resulted in a further reassessment of the likely out-turn from our participation in the Aberdeen Western Peripheral Route (AWPR) joint venture, leading to an exceptional charge of £25m.

"Reflecting the additional financial obligations arising from this contract, we have today announced our plans for a capital raise of £150m."

(LM/MH)