9th Dec 2015 07:25
LONDON (Alliance News) - Construction and infrastructure group Balfour Beatty PLC on Wednesday said it has made progress on its restructuring programme and has won new contracts, along with agreeing a new financing facility.
The FTSE 250-listed group, which has been forced into a series of profit warnings in the past couple of years due to unprofitable contracts taken on in the past, said its restructuring has made progress in the second half of the year.
Balfour said it has won new contracts on improved terms and said its order book in the second half of 2015 is broadly flat on the first. It added it remains focused on managing troublesome past contracts through to completion.
The company also has agreed a new GBP400.0 million syndicated revolving credit facility, refinancing its existing facilities and extending the maturity to 2018, with the option to be extended up to 2020.
"As we near the end of year one of the Build to Last programme, we continue to work through the challenges of the legacy problems. However, we are putting in place the systems and processes that should transform Balfour Beatty into a stronger business, as demonstrated by our successful refinancing," said Chief Executive Leo Quinn.
"Over the medium term, I remain convinced that these actions will drive superior performance, to the benefit of our customers, employees and shareholders," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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