In a trading update today, Balfour Beatty said that first-half losses in its UK construction business would be recouped by Mr Pollard in the second half, leading to break-even for the year.
In its statement, the board said: “In UK Construction, first-half performance has been weak as expected, and results have been further impacted by the £50m profit shortfall announced on 29 April... Although the environment is still difficult in the UK, the losses expected in the UK construction business in the first half are expected to be recouped in the second half as the management team, led by the newly-appointed UK Construction CEO, focuses on improving operational performance. This, combined with the timing of the cost savings benefits, is expected to result in a broadly break-even position for the year as a whole.”
Former Bovis Lend Lease CEO Nick Pollard was appointed last month to turn round the UK business after approximately 100 regional contracts were identified as being at risk of not making the profits that had been budgeted for them.