Balfour Beatty saw its underlying pre-tax profit increase to £200m in 2019, as it enjoyed a 13% increase in its order book to £14.3bn – but it is keep an eye on Coronavirus developments.
The company hailed the success of its Build To Last transformation programme, as underlying revenue in the 12 months to 31 December 2019 rose to £8.4bn, up from £7.8bn.
Balfour’s order book does not include the two HS2 civils packages and the Old Oak Common station contract which have been awarded but not yet contracted. Now that the government has given a green light to the project following an independent review of HS2, Balfour said it expected the contracts to add over £3bn to its order book in the first half of 2020.
But it warned that it is still too early to assess the impact of any outbreak of COVID-19 coronavirus on the performance of the group. Currently, all of Balfour’s offices in the UK, US and Hong Kong remain open and it said it was “monitoring developments closely”.
Leo Quinn, Balfour Beatty group chief executive, said: “Five years into our Build to Last transformation programme, we continue to drive a culture of transparency, risk management and relentless improvement. Having focused Balfour Beatty’s geographic and operational footprint, we have invested significantly in capability, innovation and standard systems and processes.
“In this way we have created a scalable business which – together with the increasing order book – gives us confidence that the Group will continue to deliver profitable managed growth and cash generation on a sustainable basis.
“We are committed to delivering value from this performance. The Group is continuing to pay down around £150 million of borrowings in 2020 and in addition, the Board will review Balfour Beatty’s capital structure once there is clearer understanding of the COVID-19 situation.”
