Press Release

Maintained expert capability and financial strength to drive future profitable growth   

• Underlying loss from operations (PFO) at £14 million (2019: £72 million profit), principally due to impact of COVID-19
• Half year net cash at £563 million (FY 2019: £512 million); average net cash at £507 million (FY 2019: £325 million)
• In March, repaid $46 million of US private placement notes; in July, fully redeemed £112 million of preference shares
• Group order book increased over 20% to £17.5 billion (FY 2019: £14.3 billion; HY 2019: £13.2 billion)
• Directors’ valuation of Investments portfolio maintained at £1.1 billion (FY 2019: £1.1 billion; HY 2019: £1.2 billion)
• Given chosen markets recover as expected, 2021 PFO outlook for earnings-based businesses broadly in line with 2019
• The Board will look to re-instate the dividend as soon as is appropriate

Leo Quinn, Balfour Beatty Group Chief Executive, said: “Since the COVID-19 crisis broke, our mission has been to safely manage through it while protecting the Group’s strengths.  That meant balancing the needs of all our stakeholders. We have kept sites open wherever safe to do so, prioritised supply chain payments and supported staff. Our people’s response has been outstanding, working tirelessly whatever the challenge, to enable Balfour Beatty to provide the daily infrastructure relied on by the public.

“We have preserved the disciplines, expert capability and financial strength we will need as markets move back to normal and then beyond, driven by fiscal stimulus for infrastructure. In achieving this, our systems, processes and leadership have all proved the value of our investments over the last five years.

“The financial impacts of COVID-19 are unavoidable; but they will pass. Since the start of Build to Last, our balance sheet, order book and expert capability are at record levels. We look forward with confidence to returning to profitable managed growth, and to delivering ongoing value for all our stakeholders.”

To read the 2020 half year results announcement in full please click here.

Notes:

¹ Including share of joint ventures and associates

² Before non-underlying items (Note 8)

³ Non-recourse net borrowings are cash and debt that are ringfenced within certain infrastructure investments project companies

A reconciliation of the Group’s performance measures to its statutory results is provided in the Measuring our financial performance section

Investor and analyst enquiries:
Angus Barry
Tel. +44 (0)7966 281635
angus.barry@balfourbeatty.com

Media enquiries:
Antonia Walton
Tel. +44 (0) 203 810 2345
antonia.walton@balfourbeatty.com

Investor and analyst presentation:

The Company has put in place alternative arrangements for the half year results presentation to comply with the restrictions on public gatherings as a result of COVID-19.

Investors and analysts will not be able to attend in person but a presentation will be made by live webcast.

Notes to editors:

• Balfour Beatty (balfourbeatty.com) is a leading international infrastructure group. With 26,000 employees, we provide innovative and efficient infrastructure that underpins our daily lives, supports communities and enables economic growth. We finance, develop, build and maintain complex infrastructure such as transportation, power and utility systems, social and commercial buildings.
• Our main geographies are the UK, US and Hong Kong. Over the last 110 years we have created iconic buildings and infrastructure all over the world including the London Olympics’ Aquatic Centre, Hong Kong’s first Zero Carbon building, the National Museum of the Marine Corps in the US and the Channel Tunnel Rail Link.