The transformation of UK-based contractor Balfour Beatty is well underway, according to its group chief executive, as the group returned to profit after two years of losses.
As Balfour Beatty revealed full year 2016 figures claiming an underlying profit from operations of £67 million (€77.59 million), CEO Leo Quinn said, “We have returned the group to profit and significantly exceeded our Build to Last Phase One targets. We have upgraded leadership, processes and controls while continuing to invest in the group’s unique strengths.”
He said that as a result, the group had improved not just the quality of its order book but its customer satisfaction scores.
“Having simplified the group,” he added, “we are focused on our core markets in the UK and US, where governments are committed to large scale expenditure on infrastructure.
“All this positions us for future profitable growth. During the next two-year phase of Build to Last, we expect to achieve industry standard margins, and over the medium term, industry-leading performance.”
The 2016 figures showed an order book up £12.7 billion (€14.71 billion), a rise of 15%, and up 4% at constant exchange rates. It said that underlying revenue of £8.5 billion (€9.85 billion) was up 4%, although down 3% at constant exchange rates.
Balfour Beatty said that its Build to Last programme had “significantly exceeded” its 24-month Phase One targets, with £439 million (€508.62 million) cash in and £123 million (€142.51 million) cost out.