Build to Last delivers increased profitability backed by strong cash performance

 

Highlights

  • On track to deliver full year performance in line with market expectations
  • Underlying profit from operations (PFO) increased 9% to £72 million (2018: £66 million)
  • PFO from earnings-based businesses increased 29% to £63 million (2018: £49 million)
  • Significant increase in average net cash at £290 million (2018: £161 million)
    • Increasing full year average net cash guidance range by £50 million to £280 – £300 million
  • Order book increased 5% to £13.2 billion (FY 2018: £12.6 billion), whilst maintaining Build to Last disciplines
  • Sector leading balance sheet, underpinned by £1.2 billion Investments portfolio
  • Interim dividend payment up 31% to 2.1 pence (2018: 1.6 pence)
(£ million unless otherwise specified)

Half year 2019

Half year 2018

Underlying2

Total

Underlying2

Total

Revenue1

3,881

3,884

3,836

3,839

Profit from operations

72

71

66

60

Pre-tax profit

64

63

56

50

Profit for the period

54

48

52

69

Basic earnings per share

7.6p

6.7p

7.5p

10.1p

Dividend per share

2.1p

1.6p

           

HY 2019

FY 2018

HY 2018

Order book1,2

£13.2bn

£12.6bn

£12.6bn

Directors’ valuation of Investments portfolio

£1.16bn

£1.15bn

£1.19bn

Net cash – recourse

425

337

366

Net cash – non-recourse3

(330)

(309)

 (329)

 

 

Leo Quinn, Group Chief Executive, said: “This is another strong set of results – increasing profits backed by a strong cash performance, plus carefully managed growth in our order book.

 

“Today, the Group’s geographic and operational diversity underpins our risk management, with over 50% of our business and Investments portfolio assets outside the UK.

 

“Combined with the strength of our balance sheet and cash flows, this positions Balfour Beatty to create and return future value to shareholders.”

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