BALFOUR Beatty has announced group performance for the year will be above previous expectations following an additional infrastructure investments sale in December.
The news was revealed in a trading update covering the period to 13 December 2018. Balfour Beatty is now forecasting that the 2018 infrastructure investments profit from disposals will be around £65 million.
The firm said UK construction operations are expected to achieve “industry standard margins” in the second half of the year in the range of 2-3%. Full completion of the Aberdeen Bypass project is expected, with the construction joint venture “continuing its dialogue” with Transport Scotland on a commercial agreement in relation to associated claims.
Leo Quinn, Balfour Beatty group chief executive said, “We are on track to deliver our Build to Last Phase Two goal of achieving industry standard margins in all earnings based businesses in the second half of 2018. The actions we have taken since the start of 2015 have created a strong foundation for the future. We have consistently invested in our capabilities, systems and leadership while de-risking the business, strengthening the balance sheet and selectively building the order book.
“Going forward, we aim to drive market leading performance by using the disciplines we have instilled to translate Balfour Beatty’s expert capabilities into long term profitable growth.”