Strong full-year results from Balfour Beatty
By Mike Hayes16 March 2021
UK’s largest construction company reports record year-end order book
Balfour Beatty, the largest construction company in the UK, has announced its full-year financial results for 2020, with a record year-end order book.
The company said the £16.4 billion (€19.1 billion) it now holds in its order book represents a 15% increase on the previous year and “provides clear medium-term visibility”.
The board of the multinational infrastructure specialist made the decision to repay the UK Government’s Job Retention Scheme payout during 2020. Nevertheless, the company recorded underlying profits from operations of £51 million (€59.4 million) and its average net cash stands at £527 million (€613 million, compared with £325 million (€378 million) in 2019. This, according to the company, exceeds previous guidance.
While recommending a final dividend for shareholders of 1.5 pence, the company announced a new group sustainability strategy and stated its aim to go beyond net zero carbon by 2040.
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 [€1.28 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.”