Balfour Beatty increases profits and returns to industry standard margins
Balfour Beatty has hailed the ongoing impact of its Build to Last transformation programme after the firm returned to industry standard margins profit margins of 2.4%.
The company’s 2018 results, which represent the culmination of the three-year turnaround and streamlining plan, revealed a pre-tax profit of £123 million, up 5% (2017: £117m) on revenue of £6,634m (2017: £6,916).
The results were impaired by a £29m loss on the Aberdeen Western Peripheral Route (AWPR) project.
During the year Balfour Beatty’s cash position remained strong with average net cash up to £194m from £42m previously.
The order book increased by 11% to £12.6 billion.
Leo Quinn, Balfour Beatty group chief executive, said the results demonstrate the value being created through the company’s Build to Last programme.
He added: “We continue to strengthen the Group and meet our targets. The businesses are back at industry standard margins, underpinned by a strong balance sheet and asset base.
“But Balfour Beatty’s transformation goes well beyond resolving the issues of forced growth. We have relentlessly invested in capability and leadership to forge a culture which provides sustainable competitive advantage through standardisation of our systems and processes, on a reducing overhead base.
“This gives us a scalable platform to drive profitable managed growth. With this internal momentum and our positions in large growing infrastructure markets, we are well placed to deliver market leading performance.”