LONDON, Dec 13 (Reuters) - British construction company Balfour Beatty said it was on track to deliver cost saving targets in line with a long-term turnaround plan, adding that it was confident that margins would recover over the next two years.
Balfour has spent the last two years in overhaul-mode under a plan called “Build to Last”, after losses in its UK construction division, plus issues elsewhere, led to multiple profit warnings that forced it to scrap its 2015 dividend.
The company said on Tuesday that by the end of 2016, it expects to deliver self-help targets of 200 million pounds ($253 million) of cash in and 100 million pounds of cost out, as well as achieving a positive net cash balance.
Chief Executive Leo Quinn said the scene was set for long-term profitable growth.
“I am confident that the next 24 months of Build to Last will see the group achieving industry-standard margins,” he said.
$1 = 0.7891 pounds Reporting by Sarah Young; editing by Kate Holton