In the face of impending spending cuts, Balfour Beatty have stood up and declared that it will have little effect on them. An investment seminar was recently held by the firm and has been well received by analysts. It also gave an indication as to how the company will deploy its substantial cash balance. The average net cash for the third quarter exceeded £400m.
When quizzed on how they thought the spending cuts would affect them Balfour have simply stated that it would cause ‘a short term flattening of growth’ and their earnings are not likely to be significantly hit.
Balfour has also said that they will move towards a more progressive dividend policy which would lead to an increase in payments. The company also plans to cut its pension deficit by paying out £40m this year and £48m every year after that until the deficit is cut.
