Group Chief Executive Leo Quinn confirmed progress in a trading update to the city today as Balfour strives to return to “industry-standard margins.”

Quinn took over in January 2015 following a run of profit warnings caused by problem contracts.

The first two-year phase of his Build to Last transformation programme is now nearing completion which Balfour said has “delivered fundamental change to the Group.”

Balfour added: “The business has been simplified and the leadership team strengthened; governance and processes are in place to drive greater transparency and control.

“By year end, the Group expects to deliver its phase one self-help targets of £200m cash in: £100m cost out and also to have a positive net cash balance.”

Management of problem legacy contracts “is proceeding to timetable and remains in line with overall expectations.”

Quinn said:  “The actions that we have taken during the first two years of Build to Last have been necessary to lay a solid foundation for long term profitable growth.

“Our people have responded to this challenge with passion and commitment.

“I am confident that the next 24 months of Build to Last will see the Group achieving industry-standard margins”.

Balfour has cuts more than 800 backroom staff during the first two years of the programme.

Problem contracts saw Balfour rack-up a £199m loss in 2015.

Full results for 2016 are due to be announced next March.