Balfour Beatty delivered a strong half year as profits and revenue increased, with the company “making great strides” to secure work that will drive future profitable growth.
Revenue for the six months to June 28 2024 rose three per cent to £4.7 billion (2034: £4.5 billion) driven by increases at Support Services division and its joint venture Gammon.
Meanwhile, its UK division revenue weakened slightly falling to £1.46 billion from £1.5 billion in the period before, though the division’s underlying profit margins improved to 2.3 per cent from 2 per cent.
The group generated a pretax profit of £112 million, up 32 per cent from £82 million in the period previous.
Underlying profit from operations (PFO) from earnings-based businesses rose 6 per cent to £101 million (2023: £95 million), while underlying group PFO dropped 4 per cent to £77 million (2023: £80 million) due to increased Infrastructure Investments costs.
Balfour’s balance sheet and cash flow remain strong with average net cash of £735 million (FY2023: £700 million) and half year dividend increased 9 per cent to 3.8p per share (2023: 3.5p).
Leo Quinn, Balfour Beatty Group chief executive, said: “The Group’s earnings-based businesses have continued their growth trajectory in the first half of 2024, driving an increase in Group profitability and cash generation, and making great strides in securing the work that will drive further profitable growth in 2025 and beyond.
“The outlook for the Group’s chosen growth markets, where we hold unique capabilities in delivering complex infrastructure projects, remains encouraging, including in the UK with the new Government reinforcing commitments to critical national infrastructure.
“Balfour Beatty’s prospects across these markets provide the Board with confidence that the Group will continue to deliver significant and attractive shareholder returns in the coming years.”
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