Balfour Beatty share price soars as investors cheer chief executive Leo Quinn's turnaround plan

 
Jessica Morris
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Quinn joined in January to reverse the struggling company's fortunes (Source: Getty)

Investors have applauded a turnaround plan put into place by construction giant Balfour Beatty’s new boss.

Shares in Balfour Beatty closed up 3.93 per cent to 261.6p this afternoon. It came despite the company posting a pre-tax loss of £150m in the six months ended 26 June earlier today.

"Six months in, our ... transformation programme is gaining traction throughout the business," Leo Quinn, the new chief executive of Balfour Beatty, said.

"We have a new senior leadership team and an organisation re-aligned with key customer sectors. We are on course to meet our 24-month targets for £200m cash in and £100m cost out."

Read more: Balfour Beatty’s new chief is ready to turn the business around

Upon the announcement of his appointment, Quinn told City A.M. he'd end the string of surprises, which have included seven profit warnings since November 2012.

"It’s a company of £10m turnover, with 40,000 employees worldwide, and its returns are far too low," he said at the end of 2014.

"The continuing surprises that it’s had should not be happening in a company of this size. I’m committed to the mission of ensuring that an iconic brand like Balfour Beatty is restored to its rightful place."

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