STRONG PERFORMANCE, BUILDING A LEADING BUSINESS ACROSS THE LIFECYCLE OF INFRASTRUCTURE ASSETS
Balfour Beatty, the international infrastructure group, reports its preliminary results for the year ended 31 December 2009.
Balfour Beatty operates in four business segments: professional services, construction services, support services and infrastructure investments, generating revenues† in the UK (54%), US (31%) and rest of the world (15%).
Financial Summary
| 2009 | 2008 | Increase | |
|---|---|---|---|
| Revenue including joint ventures and associates | £10,339m | £9,486m | +9% |
| Group revenue | £8,954m | £8,261m | +8% |
| Profit from operations | |||
| - before exceptional items and amortisation | £282m | £230m | +23% |
| - after exceptional items and amortisation | £297m | £251m | +18% |
| Pre-tax profit | |||
| - before exceptional items and amortisation | £267m | £249m | +7% |
| - after exceptional items and amortisation | £267m | £270m | (1)% |
| Earnings per share2 | |||
| - adjusted1 | 34.7p | 34.7p | - |
| - basic | 37.4p | 37.4p | - |
| Dividends per share2 | 12.0p | 11.1p | +8% |
| Financing | |||
| - net cash before PPP subsidiaries (non-recourse) | £572m | £440m | |
| - net borrowings of PPP subsidiaries (non-recourse) | £(248)m | £(143)m |
† pro-forma numbers including a full-year’s contribution from Parsons Brinckerhoff (acquired in October 2009)
1 before exceptional items and amortisation of intangible assets
2 per share data has been restated for the bonus element of the 2009 rights issue
Financial Highlights
- Pre-tax profit1 up 7% to £267 million
- Adjusted earnings per share1&2 unchanged at 34.7p
- Cash generated from operations was £294 million (2008: £297 million)
- Average net cash in the year of £283 million (2008: £239 million)
- Final dividend of 7.2p per share, full-year dividend2 up 8% at 12.0p per share (2008: 11.1p)
Operational highlights
- Order book of £14.1 billion (2008: £12.8 billion)
- Acquisition of Parsons Brinckerhoff (PB) transforms capabilities in professional services
- Particularly strong year in construction services, especially in US building
- Good performance in support services; £700 million of AMP5 contracts secured
- Infrastructure investments benefited from full-year contribution from Balfour Beatty Communities
“Our business has continued to perform well and finished the year with a strong order book of £14.1 billion.
The acquisition of Parsons Brinckerhoff, one of the world’s leading professional services companies for infrastructure markets, realised a number of the Group’s long-term strategic objectives. We have created a high-quality business operating across the infrastructure lifecycle, which is uniquely placed in major markets to benefit from the long-term growth in investment in infrastructure.
There is substantial additional value in the combination of our capabilities for major customers. Increasingly, major infrastructure owners need an integrated capability from their trusted suppliers, resulting in less interface risk and greater certainty of delivery.
The breadth of our portfolio means our business is resilient. In spite of economic uncertainty, we remain confident about the prospects for the Group.”
Ian Tyler, Chief Executive
