Balfour Beatty 2022 half year results show strong financial performance across the portfolio despite global instabilities and supply chain issues
The Balfour Beatty 2022 half year results have been released, with all business units delivering expectations and a larger order book- including a higher proportion of long term and lower risk contracts.
Profits indicate continued growth
The Balfour Beatty group reported underlying profit from operations of £85m, which represents a 42% increase on the prior year profit of £60m.
Looking ahead, the Group’s £17.7b order book increased 10% in the period (2021: £16.1b), or 4% at constant exchange rate (CER), and provides clear short- and medium-term visibility.
Balfour Beatty remains a market leader in infrastructure
In UK development, Balfour Beatty celebrated achievements such as a 2,000 tonne tunnel boring machine completing its one-mile journey underneath an ancient Warwickshire wood. The machine which started boring in December last year is the first tunnel breakthrough on the London to Birmingham HS2 route.
In the US, as part of Colorado River Constructors joint venture team, Balfour Beatty successfully set the first bridge beams that support widening activities on the Texas Department of Transportation’s Oak Hill Parkway project.
The group indicates new areas of interest for future infrastructure development, including low carbon wind power, energy efficient buildings, carbon capture, new nuclear, highways, airports, and rail electrification.
Balfour Beatty 2022 half year results indicate pension contributions up to £38m
Balfour Beatty and the trustees of the Balfour Beatty Pension Fund (BBPF) have committed to a journey plan approach to managing the BBPF. As part of this agreement, BBPF is aiming to reach self-sufficiency by 2027.
Balfour Beatty is expected to make deficit contributions to the BBPF of £38m in 2022 and £18m in 2023.
Leo Quinn, Balfour Beatty Group chief executive, said: “With the Group well-positioned to capitalise on the growing infrastructure market, underpinned by its unique capability and balance sheet strength, the upgrade to the full year performance gives the Board further confidence in future capital returns.”
