US slowdown doesn’t hold back Balfour Beatty’s pre-tax profit jump
Balfour Beatty hailed a nine per cent rise in revenues during its half year results, rising to £4.7bn up from £4.1bn when compared to last year, as the construction firm praised its “diverse portfolio” for the lift.
The business which works on trackwork and power supply builds has been less impacted by a slow down in work, compared to construction firms who work in the residential sector.
However, earnings from its order book contracted slightly to £16.4bn down from £17.7bn in the same period last year.
The group blamed tough economic conditions in the US which delayed office projects in the region going to contract for the slip.
Pre-tax profits also rose to £95m up from £85m on last year’s quarter with the group noting it remains on track to to deliver full year expectations.
“We continue to deliver from the scale and breadth of our lower risk order book, which, during this period of high inflation and interest rates, underpins the financial results reported today and our expectations for the full year,” Leo Quinn, Balfour Beatty Group chief executive, said
“Looking beyond 2023, we have positioned Balfour Beatty strongly with unique capabilities and a sector-leading balance sheet, to capitalise on national plans to transform critical infrastructure, particularly in the energy and transport markets.
He added: “This provides the board with confidence in both profitable managed growth and in our capacity to deliver significant future shareholder returns.”