Birse ordered to pay £2.1m to Citibank

Construction company Birse has been ordered to pay £2.1m to Citibank following a dispute over a contract on Citibank's new data centre in south London - the bank had claimed £16m.

The construction company, which says it will be able to make the payment from existing bank facilities, also has to find another £2m in legal fees.

The case related to the termination of a contract for a new data centre in Lewisham, south London.

Birse executive chairman Peter Watson said: "This decision removes a high degree of uncertainty over the business and allows us to move forward with greater confidence."

He added that the company was still in the process of sorting out problem contracts left by previous management.

Last year, Birse made a pre-tax profit of £6.7m, a rise of £1.5m on the previous 12 months.

Watson added that the group is "in a good position to progress further from the solid performance established over the last three years."