|(£ million unless otherwise specified)||Half-year 2016||Half-year 2015|
|Revenue incl. share of JVs and associates1||4,024||4,117||4,085||4,191|
|Profit/(loss) from operations(PFO)1||5||(23)||(120)||(140)|
|Earnings/(loss) per share1
|Dividends per share||0.9p||-|
|HY 2016||FY 2015||HY 2015|
|Directors' valuation of Investments portfolio4||1,249||1,244||1,252|
|Net cash/(borrowings) – recourse||115||163||260|
|Net cash/(borrowings) – non-recourse||(388)||(365)|| (327)
Delivering Build to Last benefits
- Order book £12.4bn, up 7% at constant exchange rates (CER)3 whilst maintaining disciplined bidding practices
- Underlying revenue £4,024m, down 6% at CER
- Underlying profit before tax of £7m (2015: £130m loss)
- Net cash of £115m, following continued working capital discipline
- New pension deficit payments plan agreed in principle
- £182m to be paid over 8 years (previous agreement: £376m)
- Dividend reinstated with interim payment of 0.9p
Build to Last Highlights
Phase One targets on track
- Increased safety observations and a reduction in Lost Time Injury Rate indicate greater staff engagement on safety
- Continued simplification of the Group
- improved systems, processes and controls driving greater visibility and control
- Further actions to upgrade leadership
- Maintained focus on cost and cash conscious culture
Leo Quinn, Group Chief Executive, commented: “We are now starting to see tangible benefits from the transformation of Balfour Beatty.
“Eighteen months into the first phase of Build to Last we have delivered our second successive half of underlying profitability and remain on track to achieve our initial targets of £200m cash in: £100m cost out. By concentrating on our selected markets, we are growing our order book within a control environment which ensures that our business decisions lead to sustainable profit and cash growth.
“We have maintained a strong balance sheet and expect Balfour Beatty to make further solid and measurable progress. As a result we are able to reinstate the dividend as planned.
“By the end of 2016 we will have successfully completed Phase One. Over the following 24 months, I am confident we can reach industry-standard margins and then build on the foundations Build to Last has put in place to deliver a Balfour Beatty with market-leading strengths and performance over the longer term.”
1 from continuing operations
2 before non-underlying items (Note 7)
3 Constant Exchange Rate (CER) is calculated as growth in local currency terms
4 includes £73 million at HY 2016 relating to the BSF portfolio of seven schools projects, as the disposal proceeds had not been
received. The cash is expected to be received in the second half.