Financial Summary
• Order book and revenues stabilising - favourable markets enabling more selective bidding
• Underlying pre-tax loss reflects historic projects - UK projects expected to be 90% complete in 2016
• Strong cash performance - £163m net cash
• Board expects to reinstate dividend, at an appropriate level, at the Interim results in August 2016
Build to Last
• New processes and controls providing transparency and improving execution
• Order book quality improving - strong pipeline of opportunities
• On course to deliver first 24-month targets of £200m cash in/£100m cost out - £357m cash improvement year-on-year, excluding
net proceeds from Parsons Brinckerhoff
Leo Quinn, Group Chief Executive, commented, "In its first year, Build to Last has achieved significant progress in transforming Balfour Beatty.
"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. Looking to the future, we are investing to maintain Balfour Beatty's expertise and assets.
"By the end of 2016 we will achieve our Phase One targets: our costs are coming down, our cash flow has improved substantially and we expect to reinstate our dividend later this year. Over the following 24 months, I am confident we can reach industry-standard margins. But above all, Build to Last is putting in place the foundations to build a Balfour Beatty with market leading strengths and performance over the longer term."
