Group performance for the year will be above previous expectations as a result of an additional Infrastructure Investments sale in December. The Group now forecasts that the 2018 Infrastructure Investments profit from disposals will be around £65 million.
The Group continues to drive fundamental transformation under the Build to Last programme, as evidenced by the fact that it expects to deliver on its key Phase Two targets, with all earnings based businesses successfully achieving industry standard margins for the second half of 2018.
Balfour Beatty continues to strengthen its balance sheet. In December, the Group paid down the remaining convertible bonds, delivering a 45% reduction in the gross debt over the last 12 months. The year end net cash is expected to be broadly in line with prior year, with 2018 average monthly net cash now forecast at £185 million, ahead of the previous £140 million to £170 million guidance range.
As expected, Group revenue in the second half of 2018 will be in line with the first half. Looking ahead, Balfour Beatty is selectively winning work in all its chosen markets, both on the right terms and at appropriate margins, which reflect the bidding discipline and risk management introduced under Build to Last. The forecast year end order book is around £12 billion, higher than the 2017 year end (£11.4 billion).
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