Balfour Beatty announces 42% increase in PFO at £279m

Balfour Beatty has seen a strong operational and financial performance across the Group, according to its 2022 full year results.

The company has reported a 42% increase in underlying profit from operations (PFO) at £279m, compared to £197m in 2021, and an underlying PFO from earnings-based businesses at £232m (£181m in 2021).

They have seen an 8% increase in their order book at £17.4bn, compared to £16.1bn in 2021.

The directors’ valuation of the investments portfolio, which is independently reviewed, increased to £1.3bn, compared to £1.1bn in 2021.

Balfour Beatty has also seen a strong cash performance, with an average net cash at £804m, compared to £671m in 2021.

There has also been a 60% increase in underlying basic EPS at 47.5p per share, compared to 29.7p per share in 2021.

There has been a 17% increase in recommended full year dividend at 10.5p per share (9p per share in 2021).

The £150m share buyback has been confirmed for the third consecutive year.

The 2023 PFO from earnings-based businesses is expected to be broadly in line with 2022.

Leo Quinn, Balfour Beatty Group chief executive, said: “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.

“The board’s confidence in both the short and longer term is reflected in its commitment to a multi-year programme of strong shareholder cash returns. We believe that Balfour Beatty’s unique capabilities and the positive outlook in its chosen markets will enable it to deliver ongoing profitable managed growth.”