The firm also has a strong £163 million net cash position. “We’ve completed the first year of a 24-month self-help plan. This company has been around for 100 years, so it’s not a quick fix. We want to make sure it’s around for another 100.”
But losses at the construction arm widened from £209 million to £229 million in 2015 largely due “to historic issues” in the UK, US and Middle East, resulting in profit writedowns and more provisions.
UK orders slid 17% as the firm was more choosy about the jobs it bid for.
Quinn hopes to have around 90% of the problem contracts completed by this year but the company’s final bill will depend on the result of negotiations with clients on a small number of projects.
“The range of potential outcomes could result in a materially positive or negative swing to underlying profitability and cashflow,” the company said.
But the chief executive was upbeat over prospects in key infrastructure markets. “If you look around there is a lot of business in the pipeline. Around the world demand is picking up.”
The shares were virtually flat, losing 0.1p to 259p. Liberum analyst Joe Brent said: “Importantly, there were no new problem projects.”
