Balfour Beatty has revealed its full-year results for 2018, as the firm achieved industry-standard construction profit margins of 2.4% in the second half of the year
Balfour Beatty reported a 10% jump in 2018 pre-tax profit as the group selected contracts more carefully in the wake of Carillion’s collapse.
Balfour achieved industry standard margins in the second half of 2018, largely thanks to its Construction Services profit increasing by 32%.
The construction giant reduced its gross debt by over 40% and repaid £231m convertible bonds.
Average net cash increased to £194m from £42m in 2017 and year-end net cash stood at £337m compared to £335m in 2017.
Commenting on the firm’s success, Leo Quinn, Balfour Beatty Group chief executive, said: “These results demonstrate the value being created through Build to Last. We continue to strengthen the group and meet our targets. The businesses are back at industry standard margins, underpinned by a strong balance sheet and asset base.
“But Balfour Beatty’s transformation goes well beyond resolving the issues of forced growth. We have relentlessly invested in capability and leadership to forge a culture which provides sustainable competitive advantage through standardisation of our systems and processes, on a reducing overhead base.
“This gives us a scalable platform to drive profitable managed growth. With this internal momentum and our positions in large growing infrastructure markets, we are well placed to deliver market leading performance.”