Balfour Beatty has seen its profits quadruple from £12million to £50million for the six months to the end of June. The company, currently in the process of completing the London Crossrail project, cites a number of key drivers behind the growth, including an extensive cost-cutting drive as well as gains from selling-off some parts of the company.
- Underlying profit from operations (PFO) increased by 69% to £66 million (2017: £39m)
- Average net cash £161 million (2017: £45m); half-year net cash £366 million (2017: £161m)
- Underlying UK Construction PFO £5 million (2017: £2m), after £15 million charge on Aberdeen Western Peripheral Route
- Higher quality order book increased 11% to £12.6 billion (2017: £11.4bn), whilst maintaining Build to Last disciplines post £108 million of sale proceeds
- Interim dividend payment up 33% to 1.6 pence per share (2017: 1.2 pence)
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- Atlantic Gateway Project worth $165 million to provide relief for commuters in Virginia
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Leo Quinn, Group Chief Executive, said: “All our businesses are now either achieving industry standard margins or on track to do so in the second half. The disciplines installed under Build to Last are also enabling us to increase the order book with key infrastructure projects to translate Balfour Beatty’s expert capabilities into future profitable growth.
“Given the strength of our balance sheet and the Board’s confidence that the Group’s full year earnings will meet expectations, we are raising the interim dividend by 33% and plan to repay the outstanding convertible bonds this year.”