Howard Seymour's questions to Balfour Beatty plc/ADR (BAFBF) leadership • FY 2016
Question
Howard Seymour from Numis inquired about the investment pipeline over the next few years and its potential for lumpiness, and also asked if the path to achieving industry-standard margins would be linear or skewed towards the end of the period.
Answer
CEO Leo Quinn confirmed that the investments business is inherently lumpy due to deal-based activity but has a significant pipeline with a lot of activity expected in the next six months. CFO Phil Harrison clarified that margin improvement will be progressive, with a more significant ramp-up in 2018 as existing lower-margin contracts trade out during 2017.