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Interim Results

Balfour Beatty dividend up 33% as underlying profits rise

16 August 2017 07:24

Balfour Beatty's underlying profit from operations rose to £39m in the six months to the end of June - up from £11m last time -and the group said it was on track to meet its full-year expectations.

The group's said the results demonstrated the strong benefits being delivered under the Build to Last transformation programme.

It added: "Significantly, there were material year-on-year improvements in each earnings-based business, with Support Services reporting profits in the range of industry-standard margins and US Construction well-positioned to do so for the full-year.

"UK Construction continues to make solid progress, reporting a profit from operations of £2 million (2016: £69 million loss).

"The Group is confident of achieving industry-standard margins in the second half of 2018 as it continues to drive three key levers for improved financial performance: managing the remaining historical contracts through to completion; reducing costs across the Group; and executing on the improved order book."

The group declared an interim dividend of 1.2 pence per share - up 33%.

Group chief executive Leo Quinn said: "These results demonstrate the transformation being driven by focusing Balfour Beatty relentlessly on its chosen markets and capabilities.

"Profitability is rising, backed by positive cash flow from operations, and the Group had average net cash during the period; all achieved without any material investment disposals. The balance sheet remains strong, underpinned by the £1.2 billion Investments portfolio.

"Under stronger leadership and much improved bidding disciplines, the businesses are booking new orders at improved margins and reduced risk.

"Our infrastructure pipeline in the US and UK remains buoyant and the Group continues to win landmark contracts such as the Dallas Southern Gateway and HS2.

"All of this gives us confidence that the Group remains on track to achieve industry-standard margins in the second half of 2018, and in line with this, we are declaring an interim dividend of 1.2 pence per share."

Story provided by StockMarketWire.com

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