But firm is hit by further UK problems and a 拢25m writedown against potential health and safety liabilities
Balfour Beatty has continued to stem its losses in results for the first half of 2016, posting a pre-tax loss of 拢21m for the period.
The half-year loss is an improvement on a series of eye-watering losses over the past two years, including a 拢150m pre-tax loss for the same period last year and a 拢199m pre-tax loss for 2015 overall. In 2014 Balfour posted a 拢304m pre-tax loss.
However, the UK construction business continued to struggle, posting a 拢66m operating loss for the first half of 2016, although this was an improvement on a 拢145m operating loss the year before.
The firm was also hit by a 拢25m writedown prompted by a 鈥渞eassessment of potential liabilities on historical health and safety breaches鈥� following the introduction of stricter sentencing guidelines earlier this year.
The group鈥檚 overall revenue declined marginally to 拢4.12bn, down from 拢4.19bn. The firm continued to pare back its UK regional construction business - which now has just 250 live jobs, down from 400 - as part of a change in strategy to focus on major, complex jobs.
Balfour said it has closed 81% of the 89 problem contracts it identified last year, with 21% closed in the first half of this year. It has set a 90% target for the end of 2016.
Balfour reinstated a dividend for shareholders as planned, of 0.9 pence per share.
Its order book ticked up to 拢12.4bn, up from 拢11bn.
Balfour鈥檚 chief executive Leo Quinn restated his target of returning the firm to 鈥渋ndustry-standard margins鈥� within two years, which he has previously said meant 2-3% in UK construction.
Quinn added: 鈥淲e are now starting to see tangible benefits from the transformation of Balfour Beatty.
鈥淓ighteen months into the first phase of Build to Last we have delivered our second successive half of underlying profitability and remain on track to achieve our initial targets of 拢200m cash in: 拢100m cost out. By concentrating on our selected markets, we are growing our order book within a control environment which ensures that our business decisions lead to sustainable profit and cash growth.鈥�
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