Balfour Beatty, the international infrastructure Group, reports its financial results for the half-year ended 26 June 2010:
| 2010 first half | 2009 first half | |
|---|---|---|
| Revenue4 including joint ventures and associates | £5,199m | £5,072m |
| Group revenue | £4,605m | £4,388m |
| Profit from operations¹ | ||
| - before exceptional items and amortisation | £151m | £113m |
| - after exceptional items and amortisation | £91m | £86m |
| Pre-tax profit1 | ||
| - before exceptional items and amortisation | £141m | £107m |
| - after exceptional items and amortisation | £81m | £65m |
| Earnings per share1,2 | ||
| - adjusted3 | 15.5p | 14.9p |
| - basic | 9.2p | 9.4p |
| Dividends per share2 | 5.05p | 4.79p |
| Financing | ||
| - net cash before PPP subsidiaries (non-recourse) | £500m | £394m |
| - net borrowings of PPP subsidiaries (non-recourse) | £(252)m | £(190)m |
1 restated for the adoption of IFRIC 12 Service Concession Arrangements
2 per share data has been restated for the bonus element of the 2009 rights issue
3 before exceptional items and amortisation of intangible assets
4 including share of revenue of joint ventures and associates
Financial highlights
- Profit from operations1,3 up 34% to £151 million
- Pre-tax profit1,3 up 32% to £141 million
- Adjusted earnings per share1,2,3 up 4% to 15.5p
- Average net cash (excluding non-recourse debt) in the first half of £436 million (2009 first half: £224 million)
- Interim dividend2 increased 5% to 5.05p per share, reflecting confidence in the Group’s ability to deliver growth over the medium term
Operational highlights
- High-quality order book of £14.6 billion (£14.1 billion at December 2009)
- Integration of Parsons Brinckerhoff continuing to proceed well and ahead of acquisition plan
- Strong profit performance in UK, US and Hong Kong construction businesses
- Successful start-up of national operations centre, with good contract wins and extensions by Balfour Beatty WorkPlace
- Sale for £24 million of two PPP investments, proceeds in excess of Directors’ valuation
- Three PPP projects reached financial close
- Appointed as preferred bidder for one scheme under the Offshore Transmission Network Owners (“OFTO”) regulatory regime in August
“We are reporting another strong performance in the first half of 2010.
We have created a Group which is uniquely well-placed in major markets to benefit from the long-term, global growth in investment in infrastructure. While the timing of short-term movements in individual markets is difficult to predict, we now have significant capabilities across the infrastructure lifecycle and operate in diverse markets and geographies, which gives us strength and resilience.
We have a high-quality order book of £14.6 billion at June 2010 and a number of opportunities in the second half of the year. This, along with the actions taken and proposed to drive efficiency, means we are well-positioned to manage any challenges in individual markets. Our continuing progressive dividend policy reflects our confidence in the Group’s ability to deliver growth over the medium term.
Overall, we remain confident about the outlook for the Group.”
Ian Tyler, Chief Executive
