Galliford Try has warned it expects to take further financial hits on the troubled £745 million Aberdeen Western Peripheral Route project.

In a trading update, Chief Executive Peter Truscott revealed further cost pressures on the scheme, caused principally by weather delays, are likely to see another exceptional charge incurred in the year.

"The amount will depend upon progress recovered through the summer, and is expected to be lower than the charge (£25m) taken in the first half," he said.

"We are continuing to discuss several significant claims. Practical completion of the project is anticipated this summer."

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Elsewhere however, MrTruscott said the Group "continues to deliver a strong operational and financial performance", as well as making good progress towards its 2021 growth plans."

In December 2014 Aberdeen Roads Limited, a joint venture of Balfour Beatty Investments Ltd, Carillion Private Finance (Transport) Ltd and Galliford Try Investments Ltd, was awarded a £745m deal to build the 58km Aberdeen Western Peripheral Route /Balmedie to Tipperty (AWPR/B-T) scheme.

Following the collapse of Carillion earlier this year, both Balfour Beatty and Galliford Try have had to shoulder costs on the project.

In a trading update today, 22 May, Balfour Beatty said: "The Group continues to make good progress on the second phase of the Build to Last transformation programme and remains on track to achieve industry standard margins in the second half of 2018.

"Completion of the Aberdeen Western Peripheral Road project is still expected this summer and there is no change to the £105 - £120 million Balfour Beatty cash outflow guidance for 2018 provided at the full year 2017 results."

(LM/MH)