Balfour Beatty plc has provided an update ahead of its results for the half-year ended 26 June 2015 which will be announced on 12 August 2015.
The company has provide the following information about three key points:
- The on-going, in-depth review of group businesses has continued to identify legacy issues in the UK, US and Middle East which will result in an additional shortfall to 2015 pre-tax profit of £120 million to £150 million. The UK accounts for approximately two-thirds of this amount.
- The Build to Last transformation programme is already gaining traction. New project disciplines and financial controls are being embedded, the new senior leadership team is substantially in place and good progress is being made against the £100 million permanent cost reduction programme.
- As a result of the actions taken under the Build to Last programme, net cash is expected to exceed £200 million (US$310 million) at the half year end - substantially better than H1 2014, demonstrating the group's ability to maintain balance sheet strength through self-help.
Group 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."