BALFOUR Beatty is on course to achieve its financial expectations for the full year, the business has revealed in a trading update covering the period to 7 December 2023.
The group’s order book at year end is expected to be marginally higher than the £16.4 billion reported at half year, while 2023 revenue is predicted to be about 5% ahead of last year’s £8.9 billion.
Balfour Beatty added that underlying profit from operations from earnings-based businesses is expected to be ‘broadly in line’ with the prior year’s figure of £232 million.
2023 average monthly net cash continues to be expected in a range of £650-£700 million.
In the UK, the HS2 works at Area North and Old Oak Common are described as continuing to progress well. The group’s order book was ‘unaffected’ by the UK Government’s decision to cancel HS2 Phase 2, which had yet to be contracted.
From 2024, the group is expecting orders in the power business to expand, as the industry positions itself to deliver the infrastructure upgrades required to facilitate net zero ambitions.
Leo Quinn, Balfour Beatty group chief executive, said, “Balfour Beatty’s solid performance has continued in the second half of the year and the board remains confident that the Group will achieve our expectations for the full year. We are pleased to confirm our fourth successive year of share buybacks in 2024, as our large order book, unique capabilities and balance sheet, provide a strong platform for continuing future shareholder returns.”
