Balfour Beatty Plc achieving industry standard margins

Balfour Beatty Plc (LON:BBY), today announced half year results for the half year ended 29 June 2018

Highlights

· Underlying profit from operations (PFO) increased by 69% to £66 million (2017: £39m)

· Average net cash £161 million (2017: £45m); half-year net cash £366 million (2017: £161m)

· Underlying UK Construction PFO £5 million (2017: £2m), after £15 million charge on Aberdeen Western Peripheral Route

· Higher quality order book increased 11% to £12.6 billion (2017: £11.4bn), whilst maintaining Build to Last disciplines

· Directors’ valuation of Investments portfolio stable at £1.2 billion, post £108 million of sale proceeds

· Interim dividend payment up 33% to 1.6 pence per share (2017: 1.2 pence)

(£ million unless otherwise specified)	Half-year 2018		Half-year 2017
(£ million unless otherwise specified)	Underlying³	Total	Underlying³	Total
Revenue^1,2	3,836	3,839	4,191	4,201
Profit from operations²	66	60	39	29
Pre-tax profit²	56	50	22	12
Profit for the period	52	69	23	20
Basic earnings per share²	7.5p	10.1p	3.2p	2.0p
Dividends per share		1.6p		1.2p

		HY 2018	HY 2017	FY 2017
Order book^1,2,3		£12.6bn	£11.4bn	£11.4bn
Directors’ valuation of Investments portfolio		1,185	1,235	1,244
Net cash – recourse		366	161	335
Net cash – non-recourse⁴		(329)	(292)	(305)

Balfour Beatty, Leo Quinn, Group Chief Executive, said, “All our businesses are now either achieving industry standard margins or on track to do so in the second half. The disciplines installed under Build to Last are also enabling us to increase the order book with key infrastructure projects to translate Balfour Beatty’s expert capabilities into future profitable growth.

“Given the strength of our balance sheet and the Board’s confidence that the Group’s full year earnings will meet expectations, we are raising the interim dividend by 33% and plan to repay the outstanding convertible bonds this year.”

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Written by: Charlotte Edwards

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