Press Release

Results demonstrate the value being created through Build to Last programme

Highlights

• Underlying pre-tax profit increased 10% to £181 million (2017: £165 million)
• Industry standard margins achieved in second half of 2018; Construction Services profit from operations increased 32%
• Gross debt reduced by over 40%; repaid £231 million convertible bonds
• Higher quality order book;  increased 11% to £12.6 billion (2017: £11.4 billion)
• Average net cash increased to £194 million (2017: £42 million); year-end net cash £337 million (2017: £335 million)
• Directors’ valuation of Investments portfolio broadly stable at £1.15 billion (2017: £1.24 billion)
• Recommended final dividend of 3.2p, up 33%; full year 4.8p (2017: full year 3.6p)    

Leo Quinn, Balfour Beatty Group Chief Executive, said: “These results demonstrate the value being created through Build to Last. We continue to strengthen the Group and meet our targets. The businesses are back at industry standard margins, underpinned by a strong balance sheet and asset base.

“But Balfour Beatty’s transformation goes well beyond resolving the issues of forced growth. We have relentlessly invested in capability and leadership to forge a culture which provides sustainable competitive advantage through standardisation of our systems and processes, on a reducing overhead base.

“This gives us a scalable platform to drive profitable managed growth. With this internal momentum and our positions in large growing infrastructure markets, we are well placed to deliver market leading performance.”

Read the full announcement here.

Notes:

¹ underlying revenue and order book includes share of joint ventures and associates

² from continuing operations

³ before non-underlying items (Note 9)

⁴ underlying basic earnings per share are from underlying continuing operations

⁵ 2017 valuation includes £62 million relating to the 7.5% partial disposal of the Connect Plus M25 asset, as the disposal proceeds had not been received at year end. These proceeds were received on 23 February 2018

⁶ non-recourse net borrowings are cash and debt that are ringfenced within certain infrastructure concession 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)20 7216 6824
angus.barry@balfourbeatty.com 

Media enquiries:
Louise McCulloch
Tel. +44 (0)20 7963 2150
louise.mcculloch@balfourbeatty.com

Investor and analyst presentation:

A presentation to investors and analysts will be made at Numis, Floor Five, The London Stock Exchange Building, 10 Paternoster Square, London, EC4M 7LT on 13 March 2019 at 09.00.
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 100 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.