Today, Balfour Beatty has announced its half-year results for the half-year ended 30 June 2017.
Financial Highlights
- Underlying profit from operations (PFO) £39m (2016: £11m); on track for full-year expectations
- Half-year net cash £161m, average net cash £45m – without material investment disposals
- Underlying revenue £4.2bn, up 8% (1% at CER)
- Directors’ valuation of Investments portfolio up 1% at £1.235bn
- Interim dividend payment up 33% to 1.2 pence per share
Operational Highlights
- Build to Last Phase Two targets: on track for industry-standard margins in the second half of 2018
- Continued to simplify and focus the Group; exited Middle East
- Order book £11.4bn, down 8% (6% at CER); selective bidding delivering higher margins and reduced risk
- Balfour Beatty VINCI joint venture awarded two HS2 contracts in July, valued at c.£2.5bn
- Strong pipeline for US and UK businesses
| (£ million unless otherwise specified) | Half-year 2017 | Half-year 20164 | ||
|---|---|---|---|---|
| Underlying3 |
Total | Underlying3 | Total | |
| Revenue1,2 | 4,191 | 4,201 | 3,883 | 3,976 |
| Profit/(loss) from operations(PFO)2 |
39 | 29 | 11 | (17) |
| Pre-tax profit (loss)2 |
22 | 12 | 13 | (15) |
| Total profit (loss) | 23 | 20 | 14 | (11) |
| Profit (loss) per share |
3.3p | 2.9p | 2.0p | (1.6p) |
| Dividends per share | 1.2p | 0.9p | ||
| Asset | HY 2017 | HY 20164 | FY 20164 |
|---|---|---|---|
| Order book1,2,3 | £11.4bn | £11.9bn | £12.4bn |
| Directors' valuation of Investments portfolio | 1,235 | 1,249 | 1,220 |
| Net cash/(borrowings) – recourse | 161 | 115 | 173 |
| Net cash/(borrowings) – non-recourse | (292) | (388) | (233) |
Leo Quinn, Group Chief Executive, commented: “These results demonstrate the transformation being driven by focusing Balfour Beatty relentlessly on its chosen markets and capabilities. Profitability is rising, backed by positive cash flow from operations, and the Group had average net cash during the period; all achieved without any material investment disposals. The balance sheet remains strong, underpinned by the £1.2 billion Investments portfolio.
“Under stronger leadership and much improved bidding disciplines, the businesses are booking new orders at improved margins and reduced risk. Our infrastructure pipeline in the US and UK remains buoyant and the Group continues to win landmark contracts such as the Dallas Southern Gateway and HS2.
“All of this gives us confidence that the Group remains on track to achieve industry-standard margins in the second half of 2018, and in line with this, we are declaring an interim dividend of 1.2 pence per share.”
Notes:
1 including share of joint ventures and associates
2 from continuing operations
3 before non-underlying items (Note 7)
4 re-presented to classify the Group’s 49% interests in Dutco Balfour Beatty LLC and BK Gulf LLC as discontinued operations
Alternative performance measures (APM), including constant exchange rates (CER), are defined in the Measuring Our Performance section of the full document available online here.
ENDS
Investor and Analyst enquiries:
Angus Barry
Tel. +44 (0)20 7216 6824
Media enquiries:
Louise McCulloch
Tel. +44 (0)207 963 2150
louise.mcculloch@balfourbeatty.com
Investor and Analyst presentation:
A presentation to investors and analysts will be made at 58VE, 58 Victoria Embankment, London, EC4Y 0DS at 09:00 (UK time) on 16 August 2017. There will be a live webcast of this presentation.
Notes to editors:
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Balfour Beatty (www.balfourbeatty.com) is a leading international infrastructure group. With 30,000 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 Far East. 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.
