Strong results demonstrate delivery of Build to Last transformation
Highlights
- Underlying profit from operations more than doubled to £196m (2016: £69m)
- All earnings-based businesses materially improved profit from operations
- Average net cash £42m (2016: £46m net debt); year end net cash £335m (2016: £173m)
- M25 partial sales in line with strategy to maximise value from Investments portfolio
- Directors’ valuation of Investment portfolio unchanged at £1.2bn
- Rebased, higher quality order book of £11.4bn, in line with half year
- Recommended final dividend of 2.4 pence per share; full year 3.6 pence per share (2016: full year 2.7 pence)
- Balfour Beatty remains on track for industry-standard margins in second half of 2018
|
(£ million unless otherwise specified) |
2017 |
|
20164 |
||
|
Underlying3 |
Statutory |
|
Underlying3 |
Statutory |
|
|
Revenue1,2 |
8,234 |
6,916 |
8,215 |
6,923 |
|
|
Profit from operations2 (PFO) |
196 |
148 |
69 |
17 |
|
|
Pre-tax profit2 |
165 |
117 |
62 |
10 |
|
|
Post-tax profit |
143 |
168 |
48 |
24 |
|
|
Basic earnings per share6 |
20.9p |
24.7p |
7.2p |
3.5p |
|
|
Dividends per share |
3.6p |
|
2.7p |
||
|
|
|
|
|||
|
2017 |
20164 |
||||
|
Order book1,2,3 |
£11.4bn |
£12.4bn |
|||
|
Directors' valuation of Investments portfolio5 |
1,244 |
1,220 |
|||
|
Net cash – recourse |
335 |
173 |
|||
|
Net borrowings – non-recourse7 |
(305) |
|
|
(233) |
|
Leo Quinn, Group Chief Executive, commented, “These results clearly demonstrate that our Build to Last programme is transforming Balfour Beatty. The Group has been repositioned to drive sustainable growth in profits, underpinned by a strong balance sheet. It has the right culture and capabilities to capitalise on the rising tide of infrastructure spend in our chosen markets.
“As a result of Build to Last, and the governance and controls now in place, we remain on track to achieve industry-standard margins in the second half of 2018. In the medium term, we are building a Group capable of delivering market-leading performance.”
Read the full announcement here.
Notes:
1 underlying revenue and order book includes share of joint ventures and associates
2 from continuing operations
3 before non-underlying items (Note 8)
4 re-presented to classify the Group’s 49% interests in Dutco Balfour Beatty LLC and BK Gulf LLC as discontinued operations
5 2017 valuation includes £62 million relating to the 7.5% second partial disposal of the Connect Plus M25 asset, as the disposal proceeds had not been received at year end. The proceeds were subsequently received on 23 February 2018
6 underlying basic earnings per share are from underlying continuing operations
7 non-recourse net borrowings are cash and debt that are ringfenced within certain infrastructure concession project companies.
A reconciliation of the Group’s performance measures to its statutory results is provided in the Measuring Our Performance section.
Investor and Analyst enquiries:
Angus Barry
Tel. +44 (0)20 7216 6824
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 the Lincoln Centre, 18 Lincoln's Inn Fields, London WC2A 3ED at 09:00 (UK time) on 14 March 2018. There will be a live webcast of this presentation.
