Balfour Beatty cuts FY losses as recovery plan takes hold

The recovery plan instigated by new Balfour Beatty boss Leo Quinn appears to be working, with full-year pre-tax losses cut by £105m to £199m and a plan to reinstate its dividend later this year.

Revenue fell 4% at £8.4bn as the firm's order book started to stabilise. Balfour said it expected to reinstate dividend, "at an appropriate level", at its interim results in August.

Quinn, appointed at the start of 2015, launched 'Build to last', a strategy to get the troubled infrastructure company back on track.

"In its first year, Build to Last has achieved significant progress in transforming Balfour Beatty," Quinn said.

"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."