9th Jul 2015 06:18
LONDON (Alliance News) - FTSE 250-listed support services and construction group Balfour Beatty PLC on Thursday said it expects an additional hit to its pretax profit in 2015 due to legacy issues in its UK, US and Middle East businesses.
Balfour said the ongoing review of its business to identify legacy issues will result in a further GBP120 million to GBP150 million hit to its pretax profit for 2015, with around two-thirds of this coming from its UK business.
It also said it is making progress on its 'Build to Last' programme and said that, as result of this scheme, net cash at the end of June will be around GBP200 million, an improvement year-on-year.
"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," said Leo Quinn, Balfour's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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