Leo Quinn

Announcing its full-year results for 2023, the contractor reported a 7% revenue increase to £9.6 billion (2022: £8.9bn), while underlying profit from operations (PFO) from earnings-based businesses also rose by 2% to £236 million (2022: £232m).

Underlying profit before tax fell by 10% which the firm put down predominantly to lower gains on investment disposals as guided.

Among Balfour Beatty’s trading divisions, UK Construction saw a 10% rise in revenue to just over £3bn.

Underlying profit at UK Construction increased to £69m from £59m last year as margins continued to recover to 2.3%, putting Balfour Beatty on track to meet its 3% target.

The UK Construction order book remained flat at £6.1bn, with 91% of those orders from public sector and regulated industry clients.

Leo Quinn, Balfour Beatty group chief executive, said: “The group’s reliability and resilience has again delivered a solid performance, with increased revenue and profit from our earnings-based businesses and strong operating cash flow. This success against a challenging economic backdrop is driven by our disciplined contract risk management across a geographically and operationally diversified portfolio.

“The board remains confident in Balfour Beatty’s ongoing ability to deliver sustainable cash generation for significant shareholder returns, with growth from our earnings-based businesses in 2024 underpinned by the strength of the Group’s order book. Looking to 2025 and beyond, we expect our unique capabilities and complex infrastructure project experience to drive further earnings growth, with attractive opportunities being pursued in the UK energy, transport and defence markets and in the US.”