BALFOUR BEATTY PLC RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2023
16 August 2023
Strong first half performance from earnings-based businesses
On track for full year expectations
Leo Quinn, Balfour Beatty Group Chief Executive, said: "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.
"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. This provides the Board with confidence in both profitable managed growth and in our capacity to deliver significant future shareholder returns."
Strong first half performance with continuing momentum from earnings-based businesses
· Revenue up 9% to £4.5 billion (2022: £4.1 billion)
· Underlying profit from operations (PFO) from earnings-based businesses up 12% to £95 million (2022: £85 million)
· Group PFO down 6% due to timing of disposals and lower Infrastructure Investments profit
· Underlying profit before tax up 13% and underlying EPS up to 13.0 pence per share (2022: 12.9 pence)
Geographically and operationally diversified portfolio providing resilience
· Construction Services: PFO up 33% to £65 million with margin increased to 1.7% (2022: 1.4%)
· Support Services: PFO 17% lower with margins at 6.5% (2022: 7.2%), full year expected towards top of 6-8% range
· Infrastructure Investments: Directors' valuation maintained at £1.3 billion (FY 2022: £1.3 billion)
Balance sheet strength and consistent cash flow supporting shareholder returns
· £150 million share buyback on track to complete in Q4
· £58 million of total dividends to be paid in 2023, with the half year dividend maintained at 3.5 pence per share
· Average net cash of £695 million (FY 2022: £804 million)
Large, lower risk order book and unique capabilities give confidence for future returns
· £16.4 billion order book underpins short to medium term outlook (FY 2022: £17.4 billion)
· Unique capabilities aligned to significant future opportunities in UK energy and transport markets
On track for full year expectations
· Earnings-based businesses PFO expected to be broadly in line with 2022
· Growing pipeline giving confidence for the long term outlook