Balfour Beatty posts strong half-year results

Construction company Balfour Beatty has released its 2022 half-year financial results, reporting a “strong financial performance”.

Balfour Beatty say that it is well placed to capitalise on future infrastructure projects. (Photo: Balfour Beatty)

The company said that for the first six months of the year it saw a total underlying profit from operations of £85 million (€100.2 million), a 42% increase from the same period last year, which saw a £14 million (€16.4 million) loss.

The UK-based company also announced a half-year order book of £17.7bn (€20.8 billion), a rise of 10% from last year’s £16.1 billion (€18.9 billion) which it says has supported overall growth and provided “clearer visibility of future returns.”

It was also a positive showing for its net cash, which increased by 21% on its half-year average from last year and now stands at £811 million (€956.1 million).

Geographically, the UK construction branch of the Group perhaps saw the most positive signs of growth. Having posted a £23 million (€27.2 million) loss in the same period last year, it returned an £18 million profit this year. US construction performed “in line with expectations” and returned a £21 million (€24.2 million) profit.

Following the release of the results, Leo Quinn, group chief executive of Balfour Beatty, told investors, “It’s been a really strong performance for the first half, it doesn’t matter what measure you look at. Whether it be profit, the value of the investment portfolio, the order book or cash flow.”

According to Balfour Beatty, an increase in infrastructure projects both in the UK and abroad, including HS2, low carbon wind power, energy efficient buildings, carbon capture, new nuclear, highways, airports, and rail electrification has presented it with further opportunities to capitalise on future growth.

Quinn added, “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.”

As well as upgrading the full year performance, an interim dividend of 3.5 pence for 2022, (17% higher than the 2021) and 67% higher than the corresponding pre-pandemic dividend for 2019 has been put in place.