Results demonstrate the value being created through Build to Last programme

Highlights

  • Underlying pre-tax profit increased 10% to £181 million (2017: £165 million)
  • Industry standard margins achieved in second half of 2018; Construction Services profit from operations increased 32%
  • Gross debt reduced by over 40%; repaid £231 million convertible bonds
  • Higher quality order book;  increased 11% to £12.6 billion (2017: £11.4 billion)
  • Average net cash increased to £194 million (2017: £42 million); year-end net cash £337 million (2017: £335 million)
  • Directors’ valuation of Investments portfolio broadly stable at £1.15 billion (2017: £1.24 billion)
  • Recommended final dividend of 3.2p, up 33%; full year 4.8p (2017: full year 3.6p)    
£ million unless otherwise specified 2018   2017
Underlying3 Total   Underlying3   Total
Revenue1,2 7,802 7,814   8,234   8,264
Profit from operations2 205 147   196   148
Pre-tax profit2 181 123   165   117
Profit for the year 179 135   143   168
Basic earnings per share4 26.3p 19.7p   20.9p   24.7p
Dividends per share   4.8p       3.6p
             
    2018       2017
Order book1,2,3 £12.6bn       £11.4bn
Directors’ valuation of Investments portfolio5 £1.15bn       £1.24bn
Net cash – recourse 337       335
Net borrowings – non-recourse6  (309)        (305)


Leo Quinn, Balfour Beatty Group Chief Executive, said: “These results demonstrate the value being created through Build to Last. We continue to strengthen the Group and meet our targets. The businesses are back at industry standard margins, underpinned by a strong balance sheet and asset base.

“But Balfour Beatty’s transformation goes well beyond resolving the issues of forced growth. We have relentlessly invested in capability and leadership to forge a culture which provides sustainable competitive advantage through standardisation of our systems and processes, on a reducing overhead base. “This gives us a scalable platform to drive profitable managed growth. With this internal momentum and our positions in large growing infrastructure markets, we are well placed to deliver market leading performance.”

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