Balfour Beatty's UK construction arm reported a 23% fall in revenue in the first four months of 2013.

In a recent update, the firm said the poor performance in the UK was responsible for an 11% drop in the group’s construction revenues, when compared with the same period of 2012. It said the UK market continued “to be adversely impacted by the shortage of major public projects and fierce competition in the regional markets”.

Balfour Beatty said the UK construction business was expected to break even in 2013. In April, the firm issued a £50 million profit warning for the UK construction business, which followed a warning in its full-year results that it expected to bring in revenue around £2.55 billion, down 20% from its revenue in 2012.

Yesterday, the firm said: “As we progress through the year, our business is expected to benefit from the cost efficiency programmes we have in place, a recovery in operational performance in UK construction and the ongoing implementation of strategic initiatives.”

The news follows mechanical engineering firm Emcor’s decision to pull out of the UK construction market. It said that “due to the construction market conditions in the UK, and customers’ changing requirements, [its] focus was best placed in areas where [it] can more fully leverage [its] knowledge and strength to positively impact customers’ businesses”.