Mixed record for Balfour as profits soar but project takes hit from Carillion collapse
Balfour Beatty’s profits soared 69 per cent in the first half of 2018 in the wake of its long turnaround plan, despite additional £23m losses stemming from a project taken over after the collapse of Carillion earlier this year.
Underlying profit from operations increased to £66m for the six months to the end of June this year, rising from £39m a year earlier, following recent measures taken to cut costs and focus on higher value contracts.
The FTSE 250 infrastructure firm, which works on projects including High Speed Rail 2 and the Hinkley Point C nuclear power station, also raised its interim dividend by 33 per cent to 1.6p per share.
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However, the company reported a £23m hit from its Aberdeen Western Peripheral Route (AWPR) bypass project after construction giant Carillion, one of its joint venture firms in the plans, collapsed earlier in the year.
Group chief executive Leo Quinn 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.”
CMC Markets analyst David Madden said: “The company’s prospects are positive as it is on track to achieve its full-year expectations. Balfour Beatty are either achieving standard industry margins or they are likely to do so in the second-half.”