Press Release (RNS)

Balfour Beatty announces 2019 full year results

11 March 2020

Group

Benefits of Build to Last accelerating

Highlights

  • 8% increase in Group underlying profit from operations (PFO) to £221 million (2018: £205 million)
  • 22% increase in PFO from earnings-based businesses to £172 million (2018: £141 million)
  • 68% increase in average net cash to £325 million (2018: £194 million)
  • 52% increase in year end net cash to £512 million (2018: £337 million)
  • 13% increase in order book to £14.3 billion (2018: £12.6 billion); c. 40% increase with recent HS2 approval
  • Investments portfolio decreased to £1.1 billion (2018: £1.2 billion); US military housing valuation reduced by £79 million
  • 33% increase in full year dividends to 6.4 pence (2018: 4.8 pence)

 

(£ million unless otherwise specified)

2019

 

2018

Underlying2

Total

 

Underlying2

 

Total

Revenue1

8,405

8,411

 

7,802

 

7,814

Profit from operations

221

159

 

205

 

147

Pre-tax profit

200

138

 

181

 

123

Profit for the year

186

133

 

179

 

135

Basic earnings per share

26.7p

19.0p

 

26.3p

 

19.7p

Dividends per share

 

6.4p

 

 

 

4.8p

 

 

 

 

 

 

 

   

2019

 

 

 

2018

Order book1,2

£14.3bn

 

 

 

£12.6bn

Directors’ valuation of Investments portfolio

£1.07bn

 

 

 

£1.15bn

Net cash – recourse

512

 

 

 

337

Net cash – non-recourse3

(302)

 

 

 

 (309)

Average net cash – recourse

325

 

 

 

194


Leo Quinn, Balfour Beatty Group Chief Executive, said: “Five years into our Build to Last transformation programme, we continue to drive a culture of transparency, risk management and relentless improvement. Having focused Balfour Beatty’s geographic and operational footprint, we have invested significantly in capability, innovation and standard systems and processes.

“In this way we have created a scalable business which – together with the increasing order book – gives us confidence that the Group will continue to deliver profitable managed growth and cash generation on a sustainable basis.

“We are committed to delivering value from this performance. The Group is continuing to pay down around £150 million of borrowings in 2020 and in addition, the Board will review Balfour Beatty’s capital structure once there is clearer understanding of the COVID-19 situation.”

Read the full announcement here.

Notes:

1 Including share of joint ventures and associates, before non-underlying items

2 Before non-underlying items (Note 9)

3 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.

ENDS

Investor and analyst enquiries:
Angus Barry
Tel. +44 (0)20 7216 6824
angus.barry@balfourbeatty.com

Media enquiries:
Antonia Walton
Tel. +44 (0)7966 929633
antonia.walton@balfourbeatty.com

Investor and analyst presentation:

A presentation to investors and analysts will be made at Farmer and Fletchers, 3 Cloth St, London, EC1A 7LD on Wednesday 11 March at 09:00.

Notes to editors:

  • Balfour Beatty (www.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.

Antonia Walton

Head of Corporate Communications