Balfour Beatty has said its profits will recover next year after the financial impacts of Covid-19 resulted in the group posting a pre-tax loss of £26m for the first half of 2020
Balfour Beatty revealed the financial impacts of Covid-19 are unavoidable.
In its half year results, the contractor posted underlying loss from operations (PFO) at £14m compared to a £17m profit the previous year.
Half year net cash was at £563m and the group’s order book increased over 20% to £17.5bn.
Leo Quinn, Balfour Beatty group chief executive, said: “Since the Covid-19 crisis broke, our mission has been to safely manage through it while protecting the group’s strengths. That meant balancing the needs of all our stakeholders.
“We have kept sites open wherever safe to do so, prioritised supply chain payments and supported staff.
“Our people’s response has been outstanding, working tirelessly whatever the challenge, to enable Balfour Beatty to provide the daily infrastructure relied on by the public.
“We have preserved the disciplines, expert capability and financial strength we will need as markets move back to normal and then beyond, driven by fiscal stimulus for infrastructure. In achieving this, our systems, processes and leadership have all proved the value of our investments over the last five years.
“The financial impacts of Covid-19 are unavoidable; but they will pass. Since the start of Build to Last, our balance sheet, order book and expert capability are at record levels.
“We look forward with confidence to returning to profitable managed growth, and to delivering ongoing value for all our stakeholders.”