Balfour Beatty, the international infrastructure group, reports its financial results for the full-year ended 31 December 2012.
| (£m unless otherwise specified) | 2012 | 2011 | Change (%) |
|---|---|---|---|
| Revenue1 | 10,896 | 11,035 | -1 |
| Group revenue | 9,483 | 9,494 | -- |
| Profit from continuing operations | |||
| – underlying2 | 309 | 331 | -7 |
| – reported | 74 | 243 | -70 |
| Pre-tax profit from continuing operations | |||
| – underlying2 | 310 | 334 | -7 |
| – reported | 75 | 246 | -70 |
| Earnings per share from continuing operations | |||
| – underlying2 | 35.0p | 35.5p | -1 |
| – basic | 6.5p | 26.7p | -76 |
| Dividends per share | 14.1p | 13.8p | +2 |
| Financing | |||
| – net cash before PPP subsidiaries (non-recourse) | 35 | 340 | |
| – net borrowings of PPP subsidiaries (non-recourse) | (368) | (332) |
1 including joint ventures and associates;
2 before non-underlying items (see Note 5)
Highlights
- Continued to grow in target geographies and sectors while facing challenges in UK and US construction markets
- Order book up 1% at £15.3bn with 63% now economic infrastructure
- Revenue1 down 1%; down 4% before the impact of foreign exchange and acquisitions
- Continuing profit growth in Professional Services and Investments
- Cost efficiency programme on track to achieve £80 million by 2015; £36 million of savings achieved at a non-underlying cost of £61 million in 2012
- Directors’ valuation of the PPP portfolio at £734 million (2011: £743 million) after the disposal of two assets generating disposal gains of £52 million
- Strategic decision taken to divest of Mainland European rail operations; non-underlying cost of £104 million incurred including £95m goodwill write down
- Underlying earnings per share down 1%; full-year dividend increased by 2% to 14.1p
“We have delivered a set of results for the full year that demonstrated resilience in underlying earnings and a stable order book in the face of continuing challenging conditions in the construction markets in the UK and USA. We have also made good progress in the implementation of measures designed to increase organisational efficiency and are on track to realise the anticipated benefits. Furthermore, our growth strategy of focusing on key market sectors and geographies is making headway, and is reflected in the continuing shift in our order book towards economic infrastructure.
“While we still believe that construction markets in 2013 will be challenging, our actions to date and ongoing strategic focus on growth markets position us well for the medium term.”
Ian Tyler, Chief Executive
