Balfour Beatty has repaid the remainder of a £252.7M debt in cash, the company has revealed.
The international infrastructure group says it has has now paid down 45% of its gross debt in the last 12 months.
The debt was in the form of convertible bonds. These differ from standard bonds in that the bondholder can convert it into a set number of shares in the firm which issued the bond, instead of simply getting the bond and any interest paid back. This can act in the bondholder’s favour if shares in the issuing firm increase in value.
Balfour Beatty issued the convertible bonds in December 2013.
The repayment harks back to a time when Balfour Beatty was on a less stable financial footing. The firm suffered a pre-tax loss of £199M in 2015 with its revenue falling to £8.4bn from £8.8bn in 2014.
Chief executive Leo Quinn launching its Build to Last Programme in 2015, which aimed to transform the firm by addressing its performance with all stakeholders – customers and suppliers, employees and subcontractors, investors and communities.
The programme set out to turn the business around by setting targets against four objectives: building a business which is lean, expert, trusted and safe.
Earlier this year the firm reported a £50M profit before tax for the six months to June, up from £12M for the same time the year before.