Benefits of Build to Last accelerating


  • 8% increase in Group underlying profit from operations (PFO) to £221 million (2018: £205 million)
  • 22% increase in PFO from earnings-based businesses to £172 million (2018: £141 million)
  • 68% increase in average net cash to £325 million (2018: £194 million)
  • 52% increase in year end net cash to £512 million (2018: £337 million)
  • 13% increase in order book to £14.3 billion (2018: £12.6 billion); c. 40% increase with recent HS2 approval
  • Investments portfolio decreased to £1.1 billion (2018: £1.2 billion); US military housing valuation reduced by £79 million
  • 33% increase in full year dividends to 6.4 pence (2018: 4.8 pence)
(£ million unless otherwise specified) 2019   2018
Underlying2 Total   Underlying2   Total
Revenue1 8,405 8,411   7,802   7,814
Profit from operations 221 159   205   147
Pre-tax profit 200 138   181   123
Profit for the year 186 133   179   135
Basic earnings per share 26.7p 19.0p   26.3p   19.7p
Dividends per share   6,4p       4.8p
    2019       2018
Order book1,2 £14.3bn       £12.6bn
Directors’ valuation of Investments portfolio £1.07bn       £1.15bn
Net cash – recourse 512       337
Net cash – non-recourse3 (302)        (309)
Average net cash – recourse 325       194

Leo Quinn, Balfour Beatty Group Chief Executive, said: “Five years into our Build to Last transformation programme, we continue to drive a culture of transparency, risk management and relentless improvement. Having focused Balfour Beatty’s geographic and operational footprint, we have invested significantly in capability, innovation and standard systems and processes.

“In this way we have created a scalable business which – together with the increasing order book – gives us confidence that the Group will continue to deliver profitable managed growth and cash generation on a sustainable basis.

“We are committed to delivering value from this performance. The Group is continuing to pay down around £150 million of borrowings in 2020 and in addition, the Board will review Balfour Beatty’s capital structure once there is clearer understanding of the COVID-19 situation.”


1 Including share of joint ventures and associates, before non-underlying items

2 Before non-underlying items (Note 9)

3 Non-recourse net borrowings are cash and debt that are ringfenced within certain infrastructure concession project companies

A reconciliation of the Group’s performance measures to its statutory results is provided in the Measuring our financial performance section.

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