BALFOUR Beatty’s “transformation” is progressing after the firm’s half-year financial figures revealed a rise in pre-tax profits to £12 million, compared with a £15 million loss a year ago.
Revenue for the first half of 2017 is also up, from £3,976 million to £4,201 million.
Group chief executive Leo Quinn said the business was on course to achieve “industry-standard margins” by the second half of next year. He commented, “These results demonstrate the transformation being driven by focusing Balfour Beatty relentlessly on its chosen markets and capabilities. Profitability is rising, backed by positive cash flow from operations, and the Group had average net cash during the period; all achieved without any material investment disposals. The balance sheet remains strong, underpinned by the £1.2 billion Investments portfolio.
“Under stronger leadership and much improved bidding disciplines, the businesses are booking new orders at improved margins and reduced risk. Our infrastructure pipeline in the US and UK remains buoyant and the Group continues to win landmark contracts such as the Dallas Southern Gateway and HS2.
“All of this gives us confidence that the Group remains on track to achieve industry-standard margins in the second half of 2018, and in line with this, we are declaring an interim dividend of 1.2 pence per share.”