Balfour Beatty plc (LON:BBY) said on Tuesday that it remains on track to achieve industry standard margins in the second half of 2018 as it makes good progress in its restructuring programme.
In an update ahead of its annual general meeting, the construction firm said trading is in line with full year expectations.
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The completion of the Aberdeen Western Peripheral Road project is still expected this summer despite the collapse of joint venture partner Carillion PLC (LON:CLLN).
Balfour continues to expect a cash outflow of £105mln to £120mln for the project in 2018, resulting from Carillion’s demise.
Carillion entered insolvency in January after racking up a debt pile of £1.5bn and failing to secure a rescue deal in talks with lenders and the government.
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The collapse of the outsourcing company put its contracts at risk, including large construction projects and government services such as prison maintenance and NHS cleaning.