Balfour Beatty suspends dividend after £59m losses in 2014

 
Lynsey Barber
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Balfour Beatty racked up losses (Source: Getty)

The figures

Balfour Beatty, the beleaguered construction firm, continues to suffer, posting total losses of £59m in 2014.

The firm won't pay out a final dividend.

Pre-tax losses came in at £304m in the year to the end of December compared to £185m the previous year, on revenue of £8.9bn. The firm also has negative operating cash flows of £372m.

Losses in its UK construction arm include a further write down of £118m.

Why it's interesting

After six profit warnings in two years (four of them coming in the last year) and fending off a takeover from Carillion, new chief Leo Quinn's turnaround job is a big one.

The sale of its American arm Parsons Brinckerhoff helped reduce those losses.

What Balfour Beatty said

The board decided not to recommend a final dividend, to ensure balance sheet strength is maintained, but expects to reinstate the dividend at an appropriate level, by March 2016.

In short

Losses were not unexpected after a terrible year for Balfour Beatty, but a largely flat opening share price this morning hints at investor trust in Quinn to turn things around.

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