Women's Health

Balfour Beatty shares jump as earnings rise

Shares of Balfour Beatty rose sharply today after the group posted an exceptional increase in first-half profit.

The construction group recorded a pre-tax profit of £83m, up from £35m a year earlier.

Operating profit rose from £40m to £82m, and the company now expects full-year profit to be higher than previously forecast.

On the strength of optimistic forecasts, the group raised its interim dividend to 3.5 pa, marking an increase of 17%.

Rising: Shares of Balfour Beatty rose sharply today after the group posted an exceptional increase in profits

Rising: Shares of Balfour Beatty rose sharply today after the group posted an exceptional increase in profits

Shares of Balfour Beatty rose 9.74% or 28.17p to 317.37p by late morning.

Annual profit from investment disposals is now expected to be between £55m and £65m, while average annual net cash is expected to be between £740m and £780m, which includes the Balfour share buyback and further outflows of working capital in the second half. .

The group said it continued to see inflationary pressures in its construction and infrastructure markets in labor and materials, but was managing rising costs well.

Balfour Beatty said: “While the group is not immune to these pressures, Balfour Beatty is currently mitigating these risks through contractual protection and early redemption using the scale and management of the chain of Group sourcing and does not expect a material impact on the full year results.”

Leo Quinn, boss of Balfour Beatty, said: “With the group well positioned to capitalize on the growing infrastructure market, underpinned by its unique capability and the strength of its balance sheet, the performance upgrade of the full year gives the board greater confidence in future capital returns.’

Danni Hewson, analyst at AJ Bell, said: “Turnaround specialist Leo Quinn continues to make progress at Balfour Beatty, despite rising costs.

‘A corporate ‘Mr Fix-it’, Quinn positioned the building services industry to take advantage of a resilient infrastructure sector and turned what was a bit of a basket case into an increasingly fine machine. oiled.

‘Since Quinn took the reins in early 2015, Balfour Beatty shares have risen 45%. A respectable performance given the impact of disruptive events like Brexit and the Covid pandemic.’

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