Firm says profit ahead of expectations as turnover set to top 拢8bn
A bullish Balfour Beatty has said profit this year will be ahead of expectations with the firm adding revenue will top 拢8bn in 2019.
The country鈥檚 biggest contractor, which brought forward a trading update 24 hours to avoid it clashing with tomorrow鈥檚 results of the UK general election, said profit for 2019 would be 鈥渂roadly in line鈥� with the previous year鈥檚 拢205m on income up 5% on last year鈥檚 拢7.8bn.
It said it had completed a refinancing in October, tying up a 拢375m agreement that runs until October 2022. The previous deal ran out at the end of next year. It added net cash for the year was forecast to be around 拢310m, ahead of the previous 拢280m to 拢300m guidance.
Its UK construction arm will turn in margins of between 2% and 3% while those from its US construction business will be between 1% and 2%. The firm added it was still investigating allegations that it had falsified records on its military housing work in the US.
The company is also still trying to strike a settlement with Transport Scotland over the costs it racked up on the scheme to build a new road in Aberdeen which completed in February this year, more than a year later.
Earlier this year, chief executive Leo Quinn (pictured) said his firm was chasing Transport Scotland for 鈥渉undreds of millions鈥� of pounds in compensation after revealing the job, which was hit by bad weather and hundreds of utility diversions, cost more than 拢1bn to build 鈥� double the original estimate.
Balfour Beatty鈥檚 order book at the year end is expected to top 拢14bn, up from last year鈥檚 拢12.6bn.
The firm will unveil its 2019 results on 11 March next year.
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