Financial Highlights
- Order book £12.7bn, up 15% (up 4% at constant exchange rates (CER))
- Underlying revenue £8.5bn, up 4% (down 3% at CER)
- Group returned to profit following two years of losses; underlying profit from operations (PFO) £67m
- In the second half of 2016 UK construction returned to underlying profitability
- Strong balance sheet: net cash at £173m, underpinned by £1.2bn Investments portfolio
- Following dividend reinstatement recommended final dividend of 1.8 pence per share (full year 2.7 pence)
Build to Last Highlights
- Significantly exceeded 24-month Phase One targets – £439m cash in: £123m cost out
- Continued to simplify the Group; exiting non-core assets
- Upgraded leadership and de-layering of management in UK and US
- Improving risk management and order book from strengthened governance
- Increased customer satisfaction
- Favourable medium and long term market outlook
- Reiterated Phase Two targets: industry-standard margins by end of 2018
|
(£ million unless otherwise specified) |
2016 |
2015 |
||
|
Underlying3 |
Statutory |
Underlying3 |
Statutory |
|
|
Revenue1,2 |
8,530 |
6,923 |
8,235 |
6,955 |
|
Profit (loss) from operations2 (PFO) |
67 |
15 |
(106) |
(182) |
|
Pre-tax profit (loss)2 |
60 |
8 |
(123) |
(199) |
|
Total profit (loss) |
48 |
24 |
(135) |
(206) |
|
Profit (loss) per share |
7.0p |
3.5p |
(19.8p) |
(301.1p) |
|
Dividends per share |
|
2.7p |
|
- |
|
|
|
|
|
|
|
|
|
2016 |
|
2015 |
|
Order book1,2,3 |
£12.7bn |
|
£11.0bn |
|
|
Directors' valuation of Investments portfolio |
1,220 |
|
1,244 |
|
|
Net cash – recourse |
173 |
|
163 |
|
|
Net borrowings – non-recourse |
(233) |
|
(365) |
|
Leo Quinn, Group Chief Executive, commented “The transformation of Balfour Beatty is well underway. We have returned the Group to profit and significantly exceeded our Build to Last Phase One targets. We have upgraded leadership, processes and controls while continuing to invest in the Group’s unique strengths. As a result, we have improved not just the quality of our order book but our customer satisfaction scores.
“Having simplified the Group, we are focused on our core markets in the UK and US, where governments are committed to large scale expenditure on infrastructure.
“All this positions us for future profitable growth. During the next two-year phase of Build to Last, we expect to achieve industry standard margins and over the medium term, industry-leading performance.”
For the results presentation slides, please click here.
For the full summary, please click here.
Notes:
1 including share of joint ventures and associates
2 from continuing operations
3 before non-underlying items (Note 8)
Alternative performance measures (APM), including constant exchange rates (CER), are defined in the section Measuring Our Performance.
Investor and Analyst enquiries:
Angus Barry
Tel. +44 (0)20 7216 6824
angus.barry@balfourbeatty.com
Media enquiries:
Louise McCulloch
Tel. +44 (0)20 7216 6846
louise.mcculloch@balfourbeatty.com
Investor and Analyst presentation:
A presentation to investors and analysts will be made at Numis Securities, The London Stock Exchange Building, London EC4M 7LT at 09:00 (UK time) on 16 March 2017.
