Balfour Beatty names broadcast boss Lord Allen as new chair
Infrastructure firm Balfour Beatty this morning announced that businessman and broadcaster Lord Charles Allen would become its next chairman.
The FTSE 250 firm said that Allen, a former chief executive of ITV and Granada, would take over as chair in July.
A Labour peer, Allen has also been chairman of ISS and EMI Group, as well as chief advisor to the Home Office.
Current chair Philip Aiken said: “I am pleased to welcome Charles Allen to Balfour Beatty. He brings to our Board a wealth of experience of international companies, a range of sectors and Government.”
“It has been a privilege to be part of Balfour Beatty over the last six years of significant progress. I wish all those who work with and for the Group the very best for its continued success.”
Lord Allen said: “It is a good time to be joining Balfour Beatty, there are significant opportunities for the company to continue to develop in its chosen markets.
“I am looking forward to working with the Board and the management team to continue to create and deliver value to all stakeholders.”
The firm also said that its earnings-based businesses were on track to deliver underlying profit from operations of £172m for 2021, in line with 2019.
Balfour Beatty said that its order book stood at £15.7bn at the end of March. It added that it was well placed to continue its growth in its core construction divisions.
Despite the positive update, shares in the firm fell 1.7 per cent this morning.
Laura Hoy, equity analyst at Hargreaves Lansdown: “Balfour Beatty is on track to make its way back to pre-pandemic levels this year, welcome news for shareholders eager to see the dividend restored to its former glory.
“While there’s no word on when that might happen yet, the group confirmed that it’s on track to reimburse shareholders through a £150m buyback scheme this year.
“The biggest sigh of relief will come from a recovery in Construction Services, which makes up over 80 per cent of the group’s overall revenue. UK construction, weighed down by the pandemic, has been a drag on the division. But the latest news suggests the region is on track to put the pandemic firmly in the rear view mirror.”