Profits climb for Balfour Beatty as order book remains strong
Construction firm Balfour Beatty posted a 10 per cent increase in the order book in the first half of the year to £17.7bn, showing the ongoing momentum in the sector despite inflationary pressures.
The company, which specialises in construction services, support services and infrastructure investment, posted a 42 per cent increase in underlying profit from operations at £85m, compared to £60m in 2021.
There was also a 68 per cent increase in underlying basic EPS at 12.9p per share, up from 7.7 pence per share last year.
Although revenue decreased in UK Construction, the segment actually returned to profit with results ahead of the same period in 2019.
Management expects that UK Construction will meet industry standard margins of 2-3 per cent for the full year and upgraded expectations.
Leo Quinn, Balfour Beatty Group Chief Executive, said: “With the Group well-positioned to capitalise on the growing infrastructure market, underpinned by its unique capability and balance sheet strength, the upgrade to the full year performance gives the Board further confidence in future capital returns.”
Commenting on the results, Andy Murphy, Director at Edison Group, said: “The group has benefited recently from government efforts to drive post-pandemic recovery. Even as global energy and material prices have risen, the increase in state-backed infrastructure has provided a good foundation for the group’s short and medium-term growth.
Investors will likely be pleased to see management’s emphasis on net-zero infrastructure, given its position as an increasingly vital global industry that is likely to see significant investment over the coming years.”