Balfour Beatty reports 70 per cent rise in profits

Construction company Balfour Beatty reported an almost 70 per cent rise in half-year pretax profit after a two-year overhaul of operations helped lift its British construction business back into the black.
By The Newsroom
Published 16th Aug 2017, 09:57 BST
Updated 11th Sep 2017, 12:18 BST
Newscast/PANewscast/PA
Newscast/PA

Balfour Beatty said pre-tax profit from continuing operations was £22m for the six months to June 30, up from £13m a year ago.

Its British construction business posted a profit from operations of £2m from a loss of £69m last year.

Hide Ad
Hide Ad

Results were helped by a strong performance in its other businesses. The group said its support services unit reported profits in the range of industry-standard margins and said its US construction business is well positioned to do so this year.

The company’s buoyant outlook contrasts with its closest peer Carillion, which analysts say may have to launch a rights issue after a profit warning and a £845m write down earlier this year.

Balfour has spent two years overhauling operations after losses at its British construction division led to multiple profit warnings. It scrapped its 2015 dividend, cancelled a share buy back and reorganised pension payments. The firm reinstated its dividend in 2016.

Leo Quinn, chief executive of Balfour Beatty, said: “Under 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.”

Balfour, which has been awarded two contracts by the High Speed 2 (HS2) railway project, declared an interim dividend of 1.2p, up 33 per cent on an year ago.