# Balfour Beatty plc delivers a solid performance, with increased revenue and profit - Link: https://www.directorstalkinterviews.com/balfour-beatty-plc-delivers-a-solid-performance-with-increased-revenue-and-profit/4121146912 - Published: 2024-03-13T07:18:12+00:00 - Author: Amilia Stone **Balfour Beatty PLC **(LON:BBY) has announced its results for the full year ended 31 December 2023. **Solid performance with expectations delivered** **Operational momentum with immediate and mid-term opportunities** > **Leo Quinn, Balfour Beatty Group Chief Executive, said**: “The Group’s reliability > and resilience has again delivered a solid performance, with increased revenue > and profit from our earnings-based businesses and strong operating cash flow. > This success against a challenging economic backdrop is driven by our disciplined > contract risk management across a geographically and operationally diversified > portfolio. > “The Board remains confident in Balfour Beatty’s ongoing ability to deliver sustainable > cash generation for significant shareholder returns, with growth from our earnings- > based businesses in 2024 underpinned by the strength of the Group’s order book. > Looking to 2025 and beyond, we expect our unique capabilities and complex infrastructure > project experience to drive further earnings growth, with attractive opportunities > being pursued in the UK energy, transport and defence markets and in the US.” **Solid performance with continuing momentum from earnings-based businesses** ·           Revenue up 7% to £9.6 billion (2022: £8.9 billion) ·       Underlying profit from operations (PFO) from earnings-based businesses up 2% to £236 million (2022: £232 million) ·           Underlying profit before tax down 10%, due predominantly to lower gains on investment disposals as guided ·           Underlying EPS of 37.3p down 21%: £55 million increase in tax charge, following £56 million credit recognised in 2022   **Resilience against economic challenges, with diversified portfolio providing stability** ·           Construction Services: PFO up 5% to £156 million (2022: £149 million) ·           Support Services: PFO margin of 8.0% (2022: 8.4%) at top of 6-8% targeted range ·          Infrastructure Investments: £1.2 billion Directors’ valuation (2022: £1.3billion) impacted by exchange and discount rates ·           Sixth consecutive year of improved employee engagement **Continued shareholder returns supported by consistent cash generation and balance sheet strength** ·           10% increase in recommended full year dividend at 11.5 pence per share( 2022: 10.5 pence per share) ·           £100 million share buyback commenced for 2024, with total expected cash returns of c.£160 million (2023: £208 million) ·           Average net cash of £700 million (2022: £804 million) as forecast **Strategic focus on strong delivery of order book and significant medium-term growth opportunity** ·           Earnings growth in current year underpinned by £16.5 billion order book( 2022: £17.4 billion) ·           Unique Group capabilities aligned to significant future opportunities ·           Earnings growth accelerating in 2025, driven by energy, transport and defence in UK and buildings in US | (£ million unless otherwise specified) | 2023 | | 2022 | | Underlying^(2) | Total | | Underlying^(2) | | Total | | Revenue^(1) | 9,595 | 9,595 | | 8,931 | | 8,931 | | Profit from earnings-based businesses | 236^(#) | 223 | | 232^(#) | | 233 | | Profit from operations | 228^(#) | 211 | | 279^(#) | | 275 | | Pre-tax profit | 261 | 244 | | 291 | | 287 | | Profit for the year | 205 | 194 | | 290 | | 287 | | Basic earnings per share | 37.3p | 35.3p | | 47.5p | | 46.9p | | Dividends per share | | 11.5p | | | | 10.5p | | | | | | | | | | | | 2023 | | | |  2022 | | Order book^(1) | £16.5bn | | | | £17.4bn | | Directors’ valuation of Investments portfolio | £1.2bn | | | | £1.3bn | | Net cash – recourse^(3) | 842 | | | | 815 | | Average net cash – recourse^(3) | 700 | | | | 804 | | **Segment analysis** | 2023 | | 2022 | | Revenue^(1) | PFO^(2,#) | PFOmargin^(2) | | Revenue^(1) | PFO^(2,#) | PFOmargin^(2) | | £m | £m | % | | £m | £m | % | | UK Construction | 3,027 | 69 | 2.3% | | 2,763 | 59 | 2.1% | | US Construction | 3,697 | 51 | 1.4% | | 3,651 | 58 | 1.6% | | Gammon | 1,357 | 36 | 2.7% | | 1,068 | 32 | 3.0% | | **Construction Services** | 8,081 | 156 | 1.9% | | 7,482 | 149 | 2.0% | | Support Services | 1,006 | 80 | 8.0% | | 989 | 83 | 8.4% | | **Earnings-based businesses** | **9,087** | **236** | **2.6%** | ** ** | **8.471** | **232** | **2.7%** | | Infrastructure Investments | 508 | 31 | | | 460 | 81 | | | Corporate activities | – | (39) | | | – | (34) | | | **Total** | 9,595 | 228 | | | 8,931 | 279 | | Notes: ^(1) Including share of joint ventures and associates ^(2) Before non-underlying items (Note 9) ^(3) Excluding non-recourse net borrowings, which comprise cash and debt ringfenced within certain infrastructure investments project companies, and lease liabilities ^(#) 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 **Investor and analyst presentation:** A presentation to investors and analysts will be made at Numis, 45 Gresham Street, London, EC2V 7BF at 09:00 (GMT) on 13 March 2024. There will be a live webcast of this on: www.balfourbeatty.com/webcast[.](http://www.balfourbeatty.com/webcast)  The webcast will be recorded and subsequently available at [Results, reports and presentations – Investors – Balfour Beatty plc](https://www.balfourbeatty.com/investors/results-reports-and-presentations/). Share on: