9th Dec 2021 11:23
(Alliance News) - Balfour Beatty PLC said on Thursday it is on track for its 2021 performance to be in line with pre-pandemic levels.
The London-based infrastructure company said it expects its construction and support services to deliver an underlying profit from operations of GBP172 million, in line with its 2019 figure.
Full-year revenue is expected to be GBP8.4 billion, down from GBP8.6 billion the previous year.
Balfour's order book is also expected to be down, dropping to GBP15.5 billion from GBP16.4 billion the previous year.
Net cash is expected to be strong, up 23% to GBP650 million from GBP527 million in 2020.
Balfour said that tendering has returned to pre-pandemic levels in US and that its focus continues to be selectively bidding for new contracts. The company has recently been awarded two USD200 million contracts in Texas and in the mid-Atlantic.
In UK construction, Balfour said its joint venture with Paris-based construction company Vinci SA had launched its first tunnel boring machine at Long Itchington Wood in Warwickshire and that progress is also being made on its central London property projects.
Balfour said that its support services maintain its strong performance as the company's power, road and rail maintenance units continued to meet expectations.
Balfour disposed of six assets in the year for around GBP80 million and said it had subsequently invested around GBP20 million in four new projects which it did not name.
Chief Executive Leo Quinn said: "The group is on track to deliver a 2021 performance in line with pre-pandemic levels. Looking to 2022, the group has a high-quality order book. We are strongly positioned in three geographies where fiscal expansion, green infrastructure growth and, in the US, public private partnerships all play to our unique engineering capability. We remain confident of capitalising on these factors to drive superior returns."
Shares in Balfour were up 2.9% at 254.40 pence on Thursday in London.
By Heather Rydings; [email protected]
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