Balfour Beatty positive despite falling revenues
By Joe Malone18 August 2016
Balfour Beatty saw its revenues fall marginally year-on-year in the first half of 2016 to £4.1 billion (€4.77 billion), representing a decrease of 1.8%.
The UK-based company also recorded a loss of £11 million (€12.8 million) in the first half of 2016. This was, however, an improvement on last year’s half-year loss of £150 million (€174.50 million).
Leo Quinn, CEO of Balfour Beatty, said the company was starting to see the positive effects of its Build to Last programme.
He said, “Eighteen months into the first phase of Build to Last we have delivered our second successive half of underlying profitability and remain on track to achieve our initial targets of £200 million (€232.67 million) cash in: £100 million (€116.33 million) cost out.
“By concentrating on our selected markets, we are growing our order book within a controlled environment, which ensures that our business decisions lead to sustainable profit and cash growth.
Quinn added that the company had maintained a strong balance sheet and it expect to make further progress. He said that, as a result, the company was able to reinstate the dividend as planned.
He added, “By the end of 2016 we will have successfully completed Phase One.
“Over the following 24 months, I am confident we can reach industry-standard margins and then build on the foundations Build to Last has put in place to deliver a Balfour Beatty with market-leading strengths and performance over the longer term.”