Balfour Beatty expects its net cash to be positive at the end of the year as the contractor continues to turnaround its business.

The firm lost over £300 million last year and Chief Executive Leo Quinn announced his 'Build to Last' programme in a bid to reverse the company's fortunes.

In a trading statement, Balfour said: "The Build to Last transformation programme continues to gain traction, as new standardised processes and controls are rolled out across the businesses.

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"The Group has had success in winning new contracts on improved terms; the order book is expected to remain broadly stable in the second half.

"At the same time the Group remains focused on managing the historic problem projects across the business through to completion."

It is understood the company has agreed to a new £400m syndicated revolving credit facility, refinancing its existing facilities due to expire in 2016.

Chief Executive Leo Quinn said: "As we near the end of Year One of the Build to Last programme, we continue to work through the challenges of the legacy problems.  However, we are putting in place the systems and processes that should transform Balfour Beatty into a stronger business, as demonstrated by our successful refinancing.

"Over the medium term, I remain convinced that these actions will drive superior performance, to the benefit of our customers, employees and shareholders."

(LM/MH)