Balfour Beatty has sold an additional 7.5% stake in Connect Plus, the company which operates the M25 orbital motorway, to fund manager Dalmore Capital Limited.

The £62 million deal sees Balfour Beatty make a £32m profit, with the proceeds being used to pay down borrowings in 2018.

The transaction follows the previous sale of 12.5% of Connect Plus to Dalmore on 21 December, which raised around £103m.

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Balfour Beatty said: "As a result of the sale of 12.5 percent of Connect Plus, announced on 21 December 2017, and this transaction, the Board's expectations for both Group profit before tax and year end net cash in 2017 are above those included in the Balfour Beatty Trading Update on 12 December 2017

"Taking account of both transactions, the expected 2017 Infrastructure Investments profit on disposal is now £85 million. The year-end net cash, which was originally forecast to be in line with prior year, is still expected to be around £103 million higher since the proceeds from the sale of the 7.5 percent tranche will not be received until 2018."

(LM/MH)