15th Mar 2016 07:44
LONDON (Alliance News) - Construction and infrastructure group Balfour Beatty PLC on Tuesday said it plans to reinstate its dividend this year following its significant restructuring, as its pretax loss narrowed in 2015.
The FTSE 250-listed company, which undertook a significant restructuring in 2014 to deal with troublesome legacy contracts in its construction division, said its pretax loss for the year to the end of December narrowed to GBP199.0 million from GBP304.0 million, mainly due to fewer losses booked on its legacy book.
Balfour said it expects 90% of its UK construction contracts to complete in 2016 but said revenue, which fell to GBP8.44 billion from GBP8.79 billion, and its order book, at GBP11.0 billion at the end of December from GBP11.4 billion at the close of 2014, have stabilised. It added the quality of its order book has improved, with more favourable markets allowing the group to be more selective on the contracts it tenders for.
The group scrapped its dividend as part of its restructuring but said it intends to reinstate payouts at its interim results, due to be published in August.
"We have upgraded the leadership team and set out a clear direction. We are implementing consistent processes to integrate our businesses into a group with greater transparency and control. Our main markets are providing a positive backdrop, so that with stronger governance we can both win and deliver business on the right terms," said Chief Executive Leo Quinn.
Quinn added costs are coming down, cash flow is improving, and Balfour expects its margins to improve to be in line with the wider industry over the next two years.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Balfour Beatty