Group CEO says progress being made
Balfour issues fresh profits warning over legacy issues
In an update ahead of its results for the half-year ended 26 June it said a review into its businesses in the UK, US and Middle East has led it to set expect a shortfall in pre-tax profit of £120 million to £150m. The UK accounts for approximately two-thirds of this amount.
On a positive note it says its 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 £100m permanent cost reduction programme.”
It says the initiative will lead to net cash of more than £200m at the half year end – substantially better than in the first half of 2014.
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.”