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| Version 1 | Version 2 |
|---|---|
| Balfour Beatty returns to profit | Balfour Beatty returns to profit |
| (about 1 hour later) | |
| UK engineering giant Balfour Beatty has returned to profit after two years of losses. | UK engineering giant Balfour Beatty has returned to profit after two years of losses. |
| The company behind Crossrail and the transformation of the former Olympic Stadium into West Ham's ground made an £8m profit, after a £199m loss in 2015. | The company behind Crossrail and the transformation of the former Olympic Stadium into West Ham's ground made an £8m profit, after a £199m loss in 2015. |
| Balfour said it had allowed its business to become too complex after a series of takeovers. | Balfour said it had allowed its business to become too complex after a series of takeovers. |
| Chief executive Leo Quinn said the company's leadership, processes and controls had been upgraded. | Chief executive Leo Quinn said the company's leadership, processes and controls had been upgraded. |
| "The transformation of Balfour Beatty is well under way," he said. | "The transformation of Balfour Beatty is well under way," he said. |
| High profile projects | High profile projects |
| The company said that, by 2014, it had become overly complex following more than a decade of acquisition-led growth. | The company said that, by 2014, it had become overly complex following more than a decade of acquisition-led growth. |
| It added there had been an overall lack of leadership and strategic direction, and that its businesses had a tendency to compete with each other. However, Balfour says its business has now been simplified. | It added there had been an overall lack of leadership and strategic direction, and that its businesses had a tendency to compete with each other. However, Balfour says its business has now been simplified. |
| The company is involved in some of the country's highest profile building projects. | The company is involved in some of the country's highest profile building projects. |
| As well as Crossrail, which will link west and east London, it is upgrading motorways and working on the Thames Tideway Tunnel. | As well as Crossrail, which will link west and east London, it is upgrading motorways and working on the Thames Tideway Tunnel. |
| In the next few years it plans to be part of the country's three biggest infrastructure projects: High Speed 2 (HS2), the new nuclear power stations at Hinkley Point C and Wylfa, and the third runway at Heathrow airport. | In the next few years it plans to be part of the country's three biggest infrastructure projects: High Speed 2 (HS2), the new nuclear power stations at Hinkley Point C and Wylfa, and the third runway at Heathrow airport. |
| 'Reasonable foundations' | |
| Analysts have been encouraged by the company's progress. | |
| "The self-help phase of the turnaround plan has restored the group to reasonable foundations, with the all-important construction division back in profit in the second half," said Nicholas Hyett, equity analyst at Hargreaves Lansdown. | |
| "The strategy now calls for the group to rebuild margins towards something close to industry standard - at around 2% it's not an overly ambitious target on the face of it, but something Balfour have failed to achieve for some time," he said. | |
| Balfour said it was upbeat about prospects as the "trading environment in the group's core UK and US markets remains positive". | Balfour said it was upbeat about prospects as the "trading environment in the group's core UK and US markets remains positive". |
| "In the UK, government policy is helping to drive a strong pipeline of major infrastructure projects in transport and energy. | "In the UK, government policy is helping to drive a strong pipeline of major infrastructure projects in transport and energy. |
| "In the US, the new administration has made infrastructure one of its key priorities." | "In the US, the new administration has made infrastructure one of its key priorities." |