Balfour Beatty hails ‘strong’ operational performance in trading update

Leo Quinn
Leo Quinn

BALFOUR Beatty has provided a trading update covering the period to 8 December 2022, in which the business revealed year-end order book is expected to be around 5% ahead of last year’s £16.1 billion figure. The firm attributed this largely due to ‘favourable foreign exchange movements’.

Full year revenue is expected to be about 5% ahead of last year’s £8.3 billion, while full year underlying profit from operations from earnings-based businesses is expected to be ‘in line with guidance at the half year’.

Profit for the year is now expected to be ahead of market expectations due to ‘positive net interest income and the recognition of deferred tax assets significantly reducing the 2022 tax charge’.

Balfour Beatty added that cash performance continues to be ‘strong’, with full year average monthly net cash forecast to be around £800 million, ahead of the previous guidance of £740-£780 million.

In the UK, the business has been appointed sole contractor to both of the SCAPE Civil Engineering frameworks, covering England, Wales and Northern Ireland, and covering the entirety of Scotland.

Leo Quinn, Balfour Beatty group chief executive, said, “We continue to expect a strong full year operational and financial performance. Looking to 2023 and beyond, our improved, de-risked and diversified order book gives us confidence that we will continue to make progress in delivering profitable managed growth.”