14th Aug 2024 09:12
(Alliance News) - Balfour Beatty PLC on Wednesday said it expects earnings growth to accelerate in 2025 while the long-term outlook remains positive.
In the six months to June 28, the London-based infrastructure construction contractor said pretax profit rose 37% to GBP112 million from GBP82 million a year prior. In contrast, underlying profit from operations fell 3.8% to GBP77 million from GBP80 million.
Revenue grew 3.3% to GBP4.68 billion from GBP4.53 billion driven by increases at Support Services and Gammon, Balfour Beatty's Hong Kong based 50:50 joint venture with Jardine Matheson Holdings Ltd.
Construction Services profit from operations rose 3% to GBP67 million with growth in UK.
At Support Services profit from operations rose 13% to GBP34 million, with full year margin seen at towards the top of 6% to 8% targeted range.
Infrastructure Investments reported a GBP7 million operating loss.
The order book edged up 0.6% to GBP16.6 billion from GBP16.5 billion.
Chief Executive Leo Quinn said: "The outlook for the group's chosen growth markets...remains encouraging, including in the UK with the new government reinforcing commitments to critical national infrastructure. Balfour Beatty's prospects across these markets provide the board with confidence that the group will continue to deliver significant and attractive shareholder returns in the coming years."
Balfour Beatty continues to expect an increase in profit from operations from its earnings-based businesses for the full year.
"Balfour Beatty's strong operational performance in the first half of the year has further underpinned the board's expectations of earnings growth in 2024, accelerating in 2025."
The longer-term outlook remains positive too, the firm said, with growth forecast in 2025 and beyond driven by the increasing opportunities in four key growth markets - energy, transport and defence sectors in the UK and the US buildings market.
Balfour Beatty raised the interim dividend by 8.6% to 3.8 pence from 3.5p a year ago. The firm said the GBP100 million share buyback is on track to complete in year.
Shares in Balfour Beatty fell 2.4% to 399.80p in London on Wednesday morning.
By Jeremy Cutler, Alliance News reporter
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