Balfour Beatty’s profits jumped 8% to £221m in strong 2019 financial results published today. (11/3/20).
The 8% increase in group underlying profit from operations (PFO) rose to £221m, compared to £205m in 2018.
Other eye-catching highlights from the report include:
- 22% increase in PFO from earnings-based businesses to £172m (2018: £141m);
- 68% increase in average net cash to £325m (2018: £194m);
- 52% increase in year end net cash to £512m (2018: £337m);
- 13% increase in order book to £14.3bn (2018: £12.6bn) c. 40% increase with recent HS2 approval;
- Investments portfolio decreased to £1.1bn (2018: £1.2bn) US military housing valuation reduced by £79m;
- 33% increase in full year dividends to 6.4 pence (2018: 4.8 pence).
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 £150m 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.”