Balfour Beatty PLC BALFOUR BEATTY AGM TRADING UPDATE (5127Y)
May 13 2021 - 2:00AM
UK Regulatory
TIDMBBY
RNS Number : 5127Y
Balfour Beatty PLC
13 May 2021
News Release
13 MAY 2021
BALFOUR BEATTY AGM TRADING UPDATE
Ahead of today's Annual General Meeting (AGM), Balfour Beatty
announces an update on trading for the period 1 January 2021 to
date.
Group performance and 2021 outlook
The Group's cash performance continues to be positive. For the
first four months of the year, the average monthly net cash balance
was around GBP600 million (Full year 2020 average: GBP527 million;
December 2020 net cash balance: GBP581 million).
The Board continues to expect that the earnings-based businesses
(Construction Services and Support Services) will deliver
underlying profit from operations for 2021 in line with 2019
(GBP172 million). For the asset-based business (Infrastructure
Investments) the Group has re-commenced the process of selling
assets, as demand for high quality infrastructure assets in the
secondary market is high.
At the end of March, the Group's order book was GBP15.7 billion
(December 2020: GBP16.4 billion). Balfour Beatty remains positive
about the strong medium term outlook in its core infrastructure
markets, where the Group is well positioned and will continue its
profitable managed growth strategy through selective bidding.
Operational update
At Construction Services, across the portfolio operations
continue to recover from the impacts of the pandemic. The most
impacted geography in the first quarter remained UK Construction
where strong performance on infrastructure projects for public
sector customers continues to be offset by the private sector
market.
Support Services has maintained its strong 2020 performance into
the new year. The power, road and rail maintenance business units
continue to deliver for their customers and in line with the
Group's withdrawal from the gas and water sector, the last
significant utilities contract completed in March 2021.
At Infrastructure Investments, the business has won two new
projects in the year. The student accommodation project at
Vanderbilt University reached financial close in April and Balfour
Beatty were also appointed preferred bidder for the GBP130 million
Royal Holloway student accommodation project. The Group has
re-commenced the process of selling assets, with the first disposal
expected to be completed in the first half of the year.
Chairman succession
Charles Allen, Lord Allen of Kensington, CBE, will join the
Board of Balfour Beatty following today's Annual General Meeting as
a Non-Executive Director and, following a transition period, will
assume the position of Chair from 20 July 2021 when he will succeed
Philip Aiken, AM who has been Chair since 2015.
Capital allocation framework
The Group's share buyback programme has accelerated in recent
weeks. Through the first four months of the year, Balfour Beatty
acquired over GBP58 million of its share capital, and expects to
complete the full GBP150 million for 2021 by year end.
Quote
Leo Quinn, Balfour Beatty Group Chief Executive, said: "The
impact of the pandemic, coupled with political changes in the US
and UK, have accelerated those Governments' spending plans on
infrastructure and sustainability as a means to stimulate economic
recovery. Today, Balfour Beatty is very well positioned to
capitalise on these changes to grow profitably in its chosen
markets."
ENDS
Investor and Analyst enquiries:
Angus Barry
Tel. +44 (0)7966 281635
angus.barry@balfourbeatty.com
Media enquiries to:
Antonia Walton
Tel. +44 (0)7966 929633
antonia.walton@balfourbeatty.com
Notes to editors:
-- Balfour Beatty ( www.balfourbeatty.com ) is a leading
international infrastructure group with 26,000 employees driving
the delivery of powerful new solutions, shaping thinking, creating
skylines and inspiring a new generation of talent to be the
change-makers of tomorrow.
-- We finance, develop, build, maintain and operate the
increasingly complex and critical infrastructure that supports
national economies and deliver projects at the heart of local
communities.
-- Over the last 112 years we have created iconic buildings and
infrastructure all over the world including: the GBP1.5 billion A14
improvement scheme - Britain's biggest road project; Hong Kong's
HK$5.5 billion world-class harbour theatre project for the West
Kowloon Cultural District Authority; and the 12.5 mile $429 million
North Metro Commuter Rail line in Colorado, US.
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END
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