Construction group Balfour Beatty reported a rise in first half pre-tax profit, as its ‘Build To Last’ scheme continues to yield results
Balfour Beatty’s ‘Build to Last’ operating programme has seen the firm select lower risk construction contracts to focus on generating cash and profitability.
The company is on track to deliver full year results as its pre-tax profit grew to £63m from £50m in the same period a year earlier.
Also, thanks to the Build to Last programme, its revenue rose to £3.88bn in the first half from £3.84bn the previous year.
Balfour Beatty’s order book increased by 5% to £13.2bn from £12.6bn in 2018.
Despite the profit increase, the company’s basic earnings per share fell to 6.7p in the first half from 10.1p in the same period of 2018.
The firm, which is working on projects that are part of expanding Heathrow Airport and the Hinkley Point C nuclear power station, also said choices to proceed with the HS2 high-speed rail network and the airport expansion would significantly improve its outlook.
Leo Quinn, group chief executive, said: “This is another strong set of results – increasing profits backed by a strong cash performance, plus carefully managed growth in our order book.
“Today, the group’s geographic and operational diversity underpins our risk management, with over 50% of our business and investments portfolio assets outside the UK.
“Combined with the strength of our balance sheet and cash flows, this positions Balfour Beatty to create and return future value to shareholders.”