Balfour Beatty, the international infrastructure group, provides a trading update covering the period to 8 December 2015 and announces the successful refinancing of its bank facility.
The Build to Last transformation programme continues to gain traction, as new standardised processes and controls are rolled out across the businesses. The Group has had success in winning new contracts on improved terms; the order book is expected to remain broadly stable in the second half. At the same time the Group remains focused on managing the historic problem projects across the business through to completion. The Group expects to be net cash positive at the year end.
The Group has agreed a new £400 million syndicated revolving credit facility, refinancing the existing facilities that had been due to expire in 2016. The size of the credit facility has been reduced, consistent with the Group’s ongoing capital requirements and the underlying strength of the balance sheet. The new facility extends through to 2018, with the option for two additional one-year extensions through to 2020.
Leo Quinn, Balfour Beatty Group Chief Executive, said: “As we near the end of Year One of the Build to Last programme, we continue to work through the challenges of the legacy problems. However, we are putting in place the systems and processes that should transform Balfour Beatty into a stronger business, as demonstrated by our successful refinancing.
“Over the medium term, I remain convinced that these actions will drive superior performance, to the benefit of our customers, employees and shareholders.”
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Notes to editors:
Balfour Beatty is a leading international infrastructure group. With 36,000 employees, we provide innovative and efficient infrastructure that underpins our daily lives, supports communities and enables economic growth.
We finance, develop, build and maintain complex infrastructure such as transportation, power and utility systems, social and commercial buildings. Our main geographies are the UK, US, Middle East and South East Asia. Over the last 100 years we have created iconic buildings and infrastructure all over the world including the London Olympics’ Aquatic Centre, Hong Kong’s first Zero Carbon building, the world’s biggest shopping mall in Dubai, the National Museum of the Marine Corps in the US and the Channel Tunnel Rail Link.