Balfour Beatty : announces 2019 half year results

News listings

14 August 2019

Build to Last delivers increased profitability backed by strong cash performance

Highlights

• On track to deliver full year performance in line with market expectations
• Underlying profit from operations (PFO) increased 9% to £72 million (2018: £66 million)
• PFO from earnings-based businesses increased 29% to £63 million (2018: £49 million)
• Significant increase in average net cash at £290 million (2018: £161 million)
  • Increasing full year average net cash guidance range by £50 million to £280 - £300 million
• Order book increased 5% to £13.2 billion (FY 2018: £12.6 billion), whilst maintaining Build to Last disciplines
• Sector leading balance sheet, underpinned by £1.2 billion Investments portfolio
• Interim dividend payment up 31% to 2.1 pence (2018: 1.6 pence)

(£ million unless otherwise specified)	Half year 2019			Half year 2018
	Underlying2	Total		Underlying2		Total
Revenue1	3,881	3,884		3,836		3,839
Profit from operations	72	71		66		60
Pre-tax profit	64	63		56		50
Profit for the period	54	48		52		69
Basic earnings per share	7.6p	6.7p		7.5p		10.1p
Dividend per share		2.1p				1.6p
		HY 2019		FY 2018		HY 2018
Order book1,2		£13.2bn		£12.6bn		£12.6bn
Directors' valuation of Investments portfolio		£1.16bn		£1.15bn		£1.19bn
Net cash - recourse		425		337		366
Net cash - non-recourse3		(330)		(309)		(329)

Leo Quinn, Group Chief Executive, said: 'This is another strong set of results - increasing profits backed by a strong cash performance, plus carefully managed growth in our order book.

'Today, the Group's geographic and operational diversity underpins our risk management, with over 50% of our business and Investments portfolio assets outside the UK.

'Combined with the strength of our balance sheet and cash flows, this positions Balfour Beatty to create and return future value to shareholders.'

Notes:

¹ revenue and order book include share of joint ventures and associates

² before non-underlying items (Note 8)

³ non-recourse net borrowings are cash and debt that are ringfenced within certain infrastructure concession project companies

A reconciliation of the Group's performance measures to its statutory results is provided in the Measuring Our Performance section.

Investor and analyst enquiries:
Angus Barry
Tel. [phone]
[e-mail]

Media enquiries:
Antonia Walton
Tel. [phone]
[e-mail]

Investor and analyst presentation:

A presentation to investors and analysts will be made at Numis Securities plc, Floor Five, The London Stock Exchange Building, 10 Paternoster Square, London, EC4M 7LT on 14 August 2019 at 09.00.

There will be a live webcast of this presentation on: https://www.balfourbeatty.com/webcast

Notes to editors:

• Balfour Beatty (balfourbeatty.com) is a leading international infrastructure group. With 26,000 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 Hong Kong. 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.