The extensive rebuilding job at the UK’s biggest construction company Balfour Beatty is only half done, said boss Leo Quinn as it racked up a £199m annual loss.
Mr Quinn became chief executive at the beginning of 2015 to tackle a crisis at Balfour, whose big projects include Crossrail and the Thames Tideway “super sewer”.
A host of loss-making contracts have triggered five profit warnings and, 18 months ago, an opportunistic takeover attempt by rival Carillion.
The results of Mr Quinn’s first year in charge showed pre-tax losses cut from £304m to £199m, as the contractor becomes more selective on bidding and cuts costs.
Nearly 850 staff were shed last year and more job cuts are likely this year, but there was cheer for the City in a return to dividend payments this summer. Balfour also has a strong £163m net cash position.
“We’ve completed the first year of a 24-month self-help plan. This company has been around for 100 years, so it’s not a quick fix. We want to make sure it’s around for another 100,” said Mr Quinn.
He hopes to have 90 per cent of the problem contracts completed this year but the final bill will depend on talks with clients on a small number of projects. “The range of potential outcomes could result in a materially positive or negative swing to underlying profitability,” the company said.
