NuGen Properties

Balfour Beatty UK construction returns to profit


Group chief executive Leo Quinn

Balfour Beatty’s 2022 revenue was up 8% at £8,931m (2021: £8,263), with a pre-tax profit of £287m (2021: £87m).

Underlying profit from operations was up 42% at £279m (2021: £197m).

The UK construction operation, which ran at a loss in 2021, appears to have been turned around.

Balfour Beatty’s UK construction business made an operating loss of £2m in 2021 on revenue of £2,593m. In 2022 it made a profit of £59m on revenue of £2,763m, at an operating margin of 2.1%.

Balfour Beatty still does most of its business overseas, generating £3,651m revenue and £58m operating profit from the USA last year, plus £1,068m revenue and £32m operating profit in Hong Kong, through its Gammon joint venture with Jardine Matheson

The order book grew by 8% in the year to £17.4bn (2021: £16.1bn) and is now 90% target-cost or cost-plus contracts, rather than riskier fixed-price contracts.

This order book does not include the £1.2bn Lower Thames Crossing project (Essex roads package) awarded in January 2023 or the seven-year £297m contract for highways maintenance in East Sussex because contracts have yet to be formally signed.

The UK construction order book grew by 9% to £6.1bn (2021: £5.6bn) and is 95% for public sector and regulated industry clients (2021: 91%).

Group chief executive Leo Quinn said: “The strong results in 2022 are a testament to Balfour Beatty’s transformation into a well-balanced and lower risk group. The diversified portfolio, both geographically in the UK, US and Hong Kong, and operationally across Construction Services, Support Services and Infrastructure Investments, plus the strength of our balance sheet and cash management, have provided the resilience for the group to deliver ahead of expectations and grow our order book through the global instability seen in 2022.

“The board’s confidence in both the short and longer term is reflected in its commitment to a multi-year programme of strong shareholder cash returns. We believe that Balfour Beatty’s unique capabilities and the positive outlook in its chosen markets will enable it to deliver ongoing profitable managed growth.”

Got a story? Email [email protected]



Source link


Customer Reviews

Nugen Properties

Customer Reviews

Dan Morten 18/01/22

Google
Easy to work with, Jordan and the team were professional and were easy to communicate with.
Would highly recommend.

Di Hayes 20/08/22

Google
NuGen Properties built an extension to the rear of my property, replacing the old conservatory. I am so pleased I chose this company. From the initial quotation, through the build and after they were professional, polite & well mannered. They kept the site tidy throughout the build and kept me informed of each stage as it happened. The work was finished to a good standard and I have had nothing but compliments on their work. I am already planning for them to come back and do some more work for me in a few months. I would 100% recommend them.

Bradley Eyles 20/06/23

Google
Nugen were fantastic throughout the works they carried out on my property, Jordan provided constant updates and ensure any questions I had were always answered. All works were completed in a timely fashion, on budget and exceptional customer service. Highly recommend!

Sonny Carter-heyward 29/02/22

Google
Brilliant service, renovated my house to make a dream a reality. Thanks guys

sitemanager 22/01/23

Google
Great firm to communicate with fast and good quality work.