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Balfour Beatty losses soar

Balfour Beatty made a pre-tax loss of £150M in the six months to 26 June 2015, the troubled contractor has revealed.

The construction giant saw its pre-tax loss grow by 159% from the same period last year, as revenue dropped by 1% to £4.19bn.

Balfour’s UK construction business made a loss of £146M in the first half of this year, up from £92M in the same period a year earlier.

Global construction services losses were £209M, which the firm said reflected poor performance in the US and the Middle East as well as in the UK.

But Balfour Beatty chief executive Leo Quinn insisted the group was still on course to achieve a dramatic turnaround in fortunes.

“Our Build to Last transformation programme is gaining traction throughout the business,” he said. “We have a new senior leadership team and an organisation re-aligned with key customer sectors. We are on course to meet our 24-month targets for £200M cash in and £100M cost out.

“Inevitably the headline numbers set out the consequences of the historic issues that are now being tackled. However the continuing confidence of our customers in Balfour Beatty’s expertise, the positive response of our people to change, demonstrated by our excellent net cash performance, and the underlying strength of our balance sheet, supported by the investments portfolio, all reinforce my conviction that over the medium term we can provide our customers, employees and shareholders with superior returns.”

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