Balfour Beatty in another £150m profit warning
Up to £100m of the latest black hole relates to UK contracts.
Today’s warning comes ahead of results for the half year ended 26 June 2015 which will be announced on 12 August.
Balfour said: “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.”
Balfour added that its Build to Last turnaround programme “is already gaining traction.”
The firm said: “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.
Balfour said its net cash position is improving and expected to exceed £200 million at the half year end.
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.”
Source: Construction Enquirer
Post date: 10 Jul 2015
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