Balfour Beatty publish 2023 half year results
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
Geographically and operationally diversified portfolio providing resilience
Balance sheet strength and consistent cash flow supporting shareholder returns
Large, lower risk order book and unique capabilities give confidence for future returns
On track for full year expectations
(£ million unless otherwise specified) | HY 2023 |
| HY 2022 | |||
Underlying2 | Total |
| Underlying2 |
| Total | |
Revenue1 | 4,527 | 4,527 |
| 4,147 | 4,147 | |
Profit from earnings-based businesses | 95# | 82 |
| 85# |
| 84 |
Profit from operations | 80# | 65 |
| 85# | 82 | |
Pre-tax profit | 97 | 82 |
| 86 | 83 | |
Profit for the period | 74 | 63 |
| 80 | 98 | |
Basic earnings per share | 13.0p | 11.1p |
| 12.9p | 15.7p | |
Dividends per share |
| 3.5p |
|
|
| 3.5p |
|
|
|
|
|
|
|
HY 2023 | FY 2022 | HY 2022 | ||||
Order book1 | £16.4bn | £17.4bn | £17.7bn | |||
Directors' valuation of Investments portfolio | £1.3bn | £1.3bn | £1.3bn | |||
Net cash – recourse3 | 710 | 815 | 742 | |||
Average net cash – recourse3 | 695 |
| 804 |
| 811 | |
Segment analysis | HY 2023 |
| HY 2022 | ||||
Revenue1 | PFO2,# | PFO margin2 |
| Revenue1 | PFO2,# | PFO margin2 | |
£m | £m | % | £m | £m | % | ||
UK Construction | 1,516 | 30 | 2.0% | 1,237 | 18 | 1.5% | |
US Construction | 1,736 | 21 | 1.2% |
| 1,766 | 21 | 1.2% |
Gammon | 583 | 14 | 2.4% | 411 | 10 | 2.4% | |
Construction Services | 3,835 | 65 | 1.7% |
| 3,414 | 49 | 1.4% |
Support Services | 463 | 30 | 6.5% |
| 499 | 36 | 7.2% |
Earnings-based businesses | 4,298 | 95 | 2.2% |
| 3,913 | 85 | 2.2% |
Infrastructure Investments | 229 | 2 |
|
| 234 | 17 |
|
Corporate activities | – | (17) |
|
| – | (17) |
|
Total | 4,527 | 80 |
|
| 4,147 | 85 |
|
Notes:
1 Including share of joint ventures and associates
2 Before non-underlying items (Note 8)
3 Excluding non-recourse net borrowings, which comprise cash and debt ringfenced within certain infrastructure investments project companies
# Underlying profit from operations, or PFO, as defined in the Measuring our financial performance section
A reconciliation of the Group’s performance measures to its statutory results is provided in the Measuring our financial performance section
Read the announcement in full here.