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Balfour Beatty trading in line with expectations as restructuring makes progress

Balfour Beatty said the completion of the Aberdeen Western Peripheral Road project is still expected this summer despite the collapse of joint venture partner Carillion

Carillion
Balfour Beatty has shrugged off the collapse of Carillion

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.

READ: Balfour Beatty to get double-digit boost from US tax changes

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.

READ: Carillion’s 'delusional directors' drove the firm off a cliff, MPs claim

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.

Quick facts: Balfour Beatty plc

Price: 228.2 GBX

LSE:BBY
Market: LSE
Market Cap: £1.57 billion
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