Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Balfour Beatty    BBY   GB0000961622

BALFOUR BEATTY

(BBY)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Balfour Beatty defies UK construction gloom with stellar results

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/14/2019 | 05:58am EDT
Raindrops are seen on a sign at a Balfour Beatty construction site in central London

(Reuters) - Shares in Balfour Beatty rose 13% after its underlying profit more than tripled in Britain where it is working on lower risk contracts such as major road improvements, a rail link, and a nuclear power station.

Balfour has sought to shore up cash and profitability in Britain as the infrastructure sector gets fewer contracts since the country voted to leave the European Union.

The company also increased its annual cash forecast, supported by lower costs, higher margin projects and a rare encouraging outlook in the beleaguered industry.

Construction activity in Britain shrank for a third month in a row in July as Brexit worries hit building projects, heightening concerns that the slowdown could spill over into other areas of the economy, a survey showed.

The FTSE 250 listed company increased its annual cash forecast by about 50 million pounds to between 280 million pounds and 300 million pounds and said pretax profit rose to 64 million pounds for the six months ended June 28 from 56 million pounds a year earlier.

"At UK Construction, there is plenty of disheartening data but Balfour, like Costain, is there for the survivor's photo," Liberum analysts said.

Infrastructure firm Costain expects lower full-year revenue as it had been hit by delays in contracts starts, but its order book grew, helped by new project wins.

London-based Balfour, which is working on projects that are part of expanding Heathrow Airport and the Hinkley Point C nuclear power station, said underlying profit from operations at its domestic construction business rose to 17 million pounds from 5 million pounds a year earlier.

Balfour worked on projects including a M4 Smart Motorway contract, the A14 in Cambridgeshire - UK's largest current road project, HS2 and Hinkley Point C.

Balfour's total order book rose 5% to 13.2 billion pounds.

It said decisions to proceed with the HS2 high-speed rail network and Heathrow airport expansion would significantly improve its outlook.

"Investors in embattled construction firm Kier or those unlucky enough to be shareholders in Carillion when it went bust must be looking at today's first half results from rival Balfour Beatty and turning green with envy," AJ Bell investment director Russ Mould.

Mould added that growth was pinned on the infrastructure developments projects.

Balfour shares rose 8.9% to 219.8 pence at 0921 GMT.

BREXIT CLAUSE

Balfour will stockpile housing materials to battle Brexit-driven delays and has a "Brexit clause" in contracts, Chief Executive Officer Leo Quinn told Reuters.

"Our contracts take into account the fact that the likes of Brexit could cause delays, which could have a financial impact ... we don't remain liable for any financial consequences associated with Brexit delay," he said.

The company, which operates a 50-50 joint venture based in Hong Kong, said there could be slight administrative delays in delivering contracts because of the clashes between police and pro-democracy protesters.

The company also said it would not currently change short term financial forecasts after allegations of falsified maintenance records at two U.S. air force bases.

(Reporting by Samantha Machado and Noor Zainab Hussain in Bengaluru; Editing by Bernard Orr and Alexandra Hudson)

By Samantha Machado and Noor Zainab Hussain

Stocks mentioned in the article
ChangeLast1st jan.
BALFOUR BEATTY -1.39% 212.6 Delayed Quote.-13.52%
COSTAIN GROUP PLC -3.08% 151.2 Delayed Quote.-50.55%
KIER GROUP PLC 2.79% 114.2 Delayed Quote.-72.77%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BALFOUR BEATTY
08/15BALFOUR BEATTY : Awarded $167 Million Contract by North Carolina Department of T..
BU
08/14EUROPE : European shares slide to six-month low as recession fears rise
RE
08/14LONDON STOCK EXCHANGE : FTSE 100 sinks to two month low on recession fears
RE
08/14BALFOUR BEATTY : Communities grows Jacksonville portfolio with luxury apartment ..
PU
08/14LONDON MARKETS: British Stocks Struggle As Economic Concerns Reignite
DJ
08/14Balfour Beatty defies UK construction gloom with stellar results
RE
08/14BALFOUR BEATTY : 2019 half year results
PU
08/14BALFOUR BEATTY : announces 2019 half year results
PU
08/12BALFOUR BEATTY : The Orlando Sentinel Names Balfour Beatty a Winner of the Orlan..
BU
08/06BALFOUR BEATTY : signs US construction agreement to deliver Broward County Conve..
PU
More news
Financials (GBP)
Sales 2019 7 638 M
EBIT 2019 180 M
Net income 2019 123 M
Finance 2019 409 M
Yield 2019 2,81%
P/E ratio 2019 12,1x
P/E ratio 2020 10,3x
EV / Sales2019 0,14x
EV / Sales2020 0,13x
Capitalization 1 475 M
Chart BALFOUR BEATTY
Duration : Period :
Balfour Beatty Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BALFOUR BEATTY
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 7
Average target price 337,14  GBp
Last Close Price 215,60  GBp
Spread / Highest target 67,0%
Spread / Average Target 56,4%
Spread / Lowest Target 13,6%
EPS Revisions
Managers
NameTitle
Leo Martin Quinn Chief Executive Officer & Executive Director
Philip Stanley Aiken Non-Executive Chairman
Philip James Harrison Chief Financial Officer & Executive Director
Chris Johnson Group Chief Information Officer
Iain G. T. Ferguson Senior Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
BALFOUR BEATTY-13.52%1 806
VINCI34.85%60 538
CHINA STATE CONSTRUCTION ENGINEERING CORPORATION-2.28%33 012
LARSEN & TOUBRO-9.97%25 245
FERROVIAL44.00%20 740
CHINA COMMUNICATIONS CONSTRUCTION CO LTD-18.05%20 178