Balfour tops £8bn group revenue with 2% construction margin

Five years into its business transformation programme, Balfour Beatty’s numbers are looking solid and its UK Construction business is finally achieving industry standard margins. However, a planned share buyback has been delayed until the stock market calms down from its current coronavirus-induced unrest. Balfour Beatty financial results for the year to 31st December 2019 show that group pre-tax profit was up 12% to £138m on revenue up nearly 8% to £8,411m. Year-end net cash topped £500m, with average net cash up 68%. Underpinning the balance sheet is a £1.1bn Investments portfolio. Revenue from UK construction was up 16% to £2.2bn. UK Construction increased its underlying operating profit by 68% to £47m representing a 2.1% operating margin. The Aberdeen Western Peripheral Route (AWPR) project, which had damaged Balfour Beatty’s financials in recent years, was finally completed, opening in February 2019.