News listings

16 August 2017

(£ million unless otherwise specified) Half-year 2017 Half-year 2016
Underlying Total Underlying Total
Revenue 4,191 4,201 3,883 3,976
Profit/(loss) from operations(PFO) 39 29 11 (17)
Pre-tax profit (loss) 22 12 13 (15)
Total profit (loss) 23 20 14 (11)
Profit (loss) per share 3.3p 2.9p 2.0p (1.6p)
Dividends per share 1.2p 0.9p
HY 2017 HY 2016 FY 2016
Order book £11.4bn £11.9bn £12.4bn
Directors' valuation of Investments portfolio 1,235 1,249 1,220
Net cash/(borrowings) - recourse 161 115 173
Net cash/(borrowings) - non-recourse (292) (388) (233)

Financial Highlights

  • Underlying profit from operations (PFO) £39m (2016: £11m); on track for full-year expectations
  • Half-year net cash £161m, average net cash £45m - without material investment disposals
  • Underlying revenue £4.2bn, up 8% (1% at CER)
  • Directors' valuation of Investments portfolio up 1% at £1.235bn
  • Interim dividend payment up 33% to 1.2 pence per share

Operational Highlights

  • Build to Last Phase Two targets: on track for industry-standard margins in the second half of 2018
  • Continued to simplify and focus the Group; exited Middle East
  • Order book £11.4bn, down 8% (6% at CER); selective bidding delivering higher margins and reduced risk
  • Balfour Beatty VINCI joint venture awarded two HS2 contracts in July, valued at c.£2.5bn
  • Strong pipeline for US and UK businesses

Leo Quinn, Group Chief Executive, commented: 'These results demonstrate the transformation being driven by focusing Balfour Beatty relentlessly on its chosen markets and capabilities. Profitability is rising, backed by positive cash flow from operations, and the Group had average net cash during the period; all achieved without any material investment disposals. The balance sheet remains strong, underpinned by the £1.2 billion Investments portfolio.

'Under stronger leadership and much improved bidding disciplines, the businesses are booking new orders at improved margins and reduced risk. Our infrastructure pipeline in the US and UK remains buoyant and the Group continues to win landmark contracts such as the Dallas Southern Gateway and HS2.

'All of this gives us confidence that the Group remains on track to achieve industry-standard margins in the second half of 2018, and in line with this, we are declaring an interim dividend of 1.2 pence per share.'

Notes:
including share of joint ventures and associates
from continuing operations
before non-underlying items (Note 7)
re-presented to classify the Group's 49% interests in Dutco Balfour Beatty LLC and BK Gulf LLC as discontinued operations

Balfour Beatty plc published this content on 16 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 16 August 2017 06:16:01 UTC.

Original documenthttps://www.balfourbeatty.com/news/results-for-the-half-year-ended-30-june-2017/?year=all&parentId=1212

Public permalinkhttp://www.publicnow.com/view/2F3B1C543C3F460F1B57747031CC65E12F06E92C