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Balfour Beatty PLC on Wednesday reported improved annual results, with profit and revenue both up, and the builder said it has a ‘positive’ outlook going forward.
The London-based infrastructure construction firm said revenue increased 8.1% to £8.93 billion in 2022 from £8.26 billion in 2021.
In UK Construction, revenue was up 6.6% to £2.76 billion from £2.59 billion, while US Construction revenue rose 9.2% to £3.65 billion from £3.34 billion a year earlier.
Pretax profit multiplied to £287 million from £87 million, as operating profit jumped to £170 million from £40 million a year earlier. Basic earnings per share surged to 46.9 pence from 21.3p. On an underlying basis, pretax profit rose 56% to £291 million from £187 million.
Order book amounted to £17.4 billion at year end, compared to £16.1 billion in 2021.
‘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,’ Chief Executive Officer Leo Quinn said.
Balfour lifted its final payout by 17% to 7.0p per share from 6.0p. It takes its annual payout to 10.5p per share, a 17% hike from 9.0p a year prior.
In addition, it plans to repurchase £150 million of shares in 2023, as part of its multi-year stock buyback programme.
Looking ahead, Balfour added: ‘The longer-term outlook for the group is also positive. The further growth and de-risking of the order book delivered in 2022, combined with the opportunities identified in the group’s chosen markets, give the board confidence in Balfour Beatty’s continued ability to deliver profitable managed growth and sustainable cash generation, and in turn significant ongoing shareholder returns.’
Shares were up 2.6% at 349.40 pence each on Wednesday morning in London.
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