Balfour Beatty announces 2020 Full Year results
10 March 2021
Record year end order book and net cash: capacity for enhanced returns
- Underlying profit from operations (PFO) at £51 million (2019: £221 million), after decision to repay UK Job Retention Scheme
- Strong cash performance with average net cash at £527 million (2019: £325 million), exceeding previous guidance
- Higher quality order book increased by 15% to £16.4 billion (2019: £14.3 billion); provides clear medium-term visibility
- Directors’ valuation of Investments portfolio stable at £1.1 billion (2019: £1.1 billion)
- New Group sustainability strategy with ambition to go beyond net zero carbon by 2040
- Re-iterating 2021 PFO outlook for earnings-based businesses to be in line with 2019
- Board recommended a final dividend of 1.5 pence, in accordance with new sustainable dividend policy
- Initial share buyback programme increased to £150 million in 2021, as part of new capital allocation framework
|
(£ million unless otherwise specified) |
2020 |
|
2019 |
|||
|
Underlying2 |
Total |
|
Underlying2 |
|
Total |
|
|
Revenue1 |
8,587 |
8,593 |
|
8,405 |
|
8,411 |
|
Profit from operations |
51 |
63 |
|
221 |
|
159 |
|
Pre-tax profit |
36 |
48 |
|
200 |
|
138 |
|
Profit for the year |
25 |
30 |
|
186 |
|
133 |
|
Basic earnings per share |
3.7p |
4.4p |
|
26.7p |
|
19.0p |
|
Dividends per share |
|
1.5p |
|
|
|
2.1p |
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
Order book1,2 |
£16.4bn |
|
|
|
£14.3bn |
|
|
Directors' valuation of Investments portfolio |
£1.09bn |
|
|
|
£1.07bn |
|
|
Net cash – recourse |
581 |
|
|
|
512 |
|
|
Net cash – non-recourse3 |
(317) |
|
|
|
(302) |
|
|
Average net cash – recourse |
527 |
|
|
|
325 |
|
Leo Quinn, Balfour Beatty Group Chief Executive, said: “Throughout the pandemic, we have protected the Group’s strengths, supported our stakeholders and held firm to our disciplines. That we achieved this while exceeding our own targets for net cash demonstrates Balfour Beatty’s resilience and the dedication of our people and partners.
“Our leading positions in large growing infrastructure and construction markets, record year end order book and £1.1 billion Investments portfolio provide confidence in future cash generation. This underpins our new capital allocation framework which demonstrates Balfour Beatty’s commitment to deliver enhanced returns to shareholders.”
To read the announcement in full, please click here.
Notes:
1 Including share of joint ventures and associates
2 Before non-underlying items (Note 9)
3 Non-recourse net borrowings are cash and debt that are ringfenced within certain infrastructure investments project companies
A reconciliation of the Group’s performance measures to its statutory results is provided in the Measuring our financial performance section
Investor and analyst enquiries:
Angus Barry
Tel. +44 (0)7966 281635
angus.barry@balfourbeatty.com
Media enquiries:
Antonia Walton
Tel. +44 (0)7966 929633
antonia.walton@balfourbeatty.com
All non-media related enquiries should be directed to +44 (0)20 7216 6800 or info@balfourbeatty.com
Notes to editors
- Balfour Beatty (com) is a leading international infrastructure group with 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 111 years we have created iconic buildings and infrastructure all over the world including: the £1.5 billion A14 improvement scheme - Britain’s biggest road project; Hong Kong’s HK$5.5 billion world-class harbour theatre project for the West Kowloon Cultural District Authority; and the 12.5 mile $429 million North Metro Commuter Rail line in Colorado, US.