By Jonathan Davies

British engineering group Balfour Beatty has issued another profit warning, which is likely to see it report a loss for the financial year.

Market analysts had forecast profits for £77 million for the 2015, but Balfour Beatty says its end of year figures will be hit by a £120-150m "shortfall".

Its own review continued to "identify legacy issues" in the UK, US and Middle East. However the engineering firm said around two thirds of the shortfall will come from the UK market.

Today's profit warning is the latest of several issued over the past two years.

Balfour Beatty last year reported a loss of £59m, following a £185m profit in 2013.

Balfour's chief executive, Leo Quinn said: "The issues we are working through are as I set out in March and legacy challenges remain.

"However, we are making encouraging progress on the group's transformation. The positive response of our people to change, the continuing confidence of our customers in Balfour Beatty's expertise and the first signs of improving cash performance reinforce my conviction in the group's long-term success."