Press Release (RNS)

Delivering earnings growth and continued shareholder returns

On track to achieve full year expectations

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.”

Continued growth from the earnings-based businesses

• Revenue¹ up 3% to £4.7 billion (2023: £4.5 billion) driven by increases at Support Services and Gammon
• Underlying profit from operations (PFO) from earnings-based businesses up 6% to £101 million (2023: £95 million)
• Underlying Group PFO of £77 million (2023: £80 million) down 4% due to increased Infrastructure Investments costs
• Underlying EPS up 18% to 15.3 pence per share (2023: 13.0 pence)

Diversified portfolio delivering consistency and earnings growth

• Construction Services: PFO up 3% to £67 million with growth in UK
• Support Services: PFO up 13% to £34 million, full year expected towards top of 6-8% targeted margin range
• Infrastructure Investments: £7 million loss in first half; £20 - £30 million gain on disposals forecast for second half

Significant momentum in growth markets

• Material new work initiated with SSEN, National Grid, BP, Rolls-Royce and other key customers in 2024
• £16.6 billion order book (FY2023: £16.5 billion) and first half results underpinning 2024 earnings growth
• Earnings growth accelerating in 2025, with good progress made in chosen markets

Balance sheet and cash flow strength supporting continuing attractive shareholder returns 

• Average net cash³ of £735 million (FY2023: £700 million)
• Directors valuation of the Investments portfolio increased 5% to £1.3 billion (FY2023: £1.2 billion)
• Half year dividend increased by 9% to 3.8 pence per share (2023: 3.5p)
• £60 million of total dividends to be paid in 2024 and £100 million share buyback on track to complete in year

Notes:

¹ Including share of joint ventures and associates

² Before non-underlying items (Note 8)

³ Excluding non-recourse net borrowings, which comprise cash and debt ringfenced within certain infrastructure investments project companies

^# Underlying profit from operations, or PFO, as defined in the Measuring our financial performance section

A reconciliation of the Group’s performance measures to its statutory results is provided in the Measuring our financial performance section

To read the announcement in full, click here. 

ENDS 

Investor and analyst enquiries:
Jim Ryan
Tel. +44 (0)7858 368527
jim.ryan@balfourbeatty.com

Media enquiries:
Antonia Walton
Tel. +44 (0)203 810 2345
antonia.walton@balfourbeatty.com  

Investor and analyst presentation:

A presentation to investors and analysts will be made at Deutsche Numis, 45 Gresham Street, London, EC2V 7BF at 09:00 (GMT) on 14 August 2024. There will be a live webcast of this on: www.balfourbeatty.com/webcast. The webcast will be recorded and subsequently available at Results, reports and presentations - Investors - Balfour Beatty plc.

Notes to editors:

• Balfour Beatty is a leading international infrastructure group with over 26,000 employees driving the delivery of powerful new solutions, shaping thinking, creating skylines and inspiring a new generation of talent to be the change-makers of tomorrow.
• We finance, develop, build, maintain and operate the increasingly complex and critical infrastructure that supports national economies and deliver projects at the heart of local communities.
• Over the last 114 years we have created iconic buildings and infrastructure all over the world. Currently, we are working to deliver Hinkley Point C, the first UK nuclear power station in a generation; constructing the world-class arts and cultural facility, the Lyric Theatre, in Hong Kong; and designing, building, financing, operating and maintaining the Automated People Mover superstructure at the fifth busiest airport in the world, Los Angeles International Airport.