Balfour Beatty on track for 2-3% margin by late 2018

Aaron Morby 1 year ago
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Balfour Beatty chief Leo Quinn said today his turnaround programme was on track to return the firm to industry standard construction margins of 2-3% by the second half of next year.

Balfour chief Leo Quinn says group well on track to pay down borrowing after three-year Build to Last turnaround plan

In an end of year trading statement, he said proceeds from the sale of Heery International, operating cash flows and expected future sales put Balfour Beatty in an ‘excellent position’ to pay down borrowings as they fell due next year.

He said: “The actions that we have taken during the first three years of Build to Last have laid a solid foundation for long term profitable growth.

“We continue to invest in our capabilities while de-risking the business.”

He added that Bafour continued to win new business on terms and at rates which reflect the bidding discipline and risk management introduced under Build to Last.

“The order book increasingly consists of projects bid and delivered under our enhanced transparency, governance and controls and I remain confident that the Group will achieve industry-standard margins in the second half of 2018.”

Quinn said that group performance in 2017 met expectations, with  year-end net cash at £40m in line with prior year.

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