Balfour results can help “restore confidence” in construction

Grant Prior 11 months ago
Share

Balfour Beatty Group Chief Executive Leo Quinn is hoping the contractor’s latest set of positive half-year results can help “restore confidence to the whole construction sector.”

Leo Quinn has overseen a turnaround in the business
Leo Quinn has overseen a turnaround in the business

Balfour posted an underlying pre-tax profit of £64m for the first half of 2019 up from £56m last time as turnover rose to £3,881m from £3,836m.

The company continued to improve its cash position with average net cash increasing to £290m from £161m.

Quinn said the strong results and cash position make Balfour a “safe harbour” for potential clients as some rival contractors continue to struggle.

Balfour is positioning itself to take a significant share of major planned infrastructure work.

But the company is not booking in HS2 work yet while political doubts continue over the project’s future as new Prime Minister Boris Johnson reviews the scheme.

Balfour said: “On HS2, early contractor involvement (ECI) is ongoing on the main civils works, which were awarded as two-part design and build contracts in July 2017.

“Balfour Beatty VINCI won two Lots around Birmingham, N1 and N2, worth about £2.5 billion (Balfour Beatty 50%).

“These contracts are included in awarded but not contracted (ABNC) during the ECI period and will only be included in the order book on signing of the main civils works contracts.

“The joint venture team is currently working on the design and pricing of the two Lots, with the ECI work expected to be completed by the end of 2019.”

Turnover at the UK Construction division increased for the first time since Quinn introduced the Build to Last turnaround programme.

Revenue was up to £1,014m from £947m as underlying profits increased to £17m from £5m at a margin of 1.7%.

Quinn told the Enquirer: “We continue to be selective with out work and are often seen as a safe harbour by clients.

“Delay and procrastination is the enemy of contractors and of course we want to see major projects like HS2 go ahead.

“These results show that construction can deliver and should help restore confidence to the whole sector.”

Latest news

DfE readies firms for ‘new deal’ schools building push

Over 30 firms in fight for places as existing £8bn framework comes up for renewal
3 hours ago

Student rooms developer gears up to build again

Unite buys Edinburgh site for 300-bed scheme after Covid-work pause
3 hours ago

Farringdon office scheme to restart after £140m funding deal

Confidence boost for London market as main contractor due to be appointed shortly
3 hours ago

HS2 team unearths Iron Age murder victim

Large wood-henge structure uncovered during Buckinghamshire tunnel site excavations
4 hours ago

Hotel and office block plan for Manchester Mayfield scheme

Work to start early next summer on 385,000 sq ft project
4 hours ago

South London’s Purley tower approved

Developer Thornsett Group get thumbs up for 17-storey tower mixed-use scheme
4 hours ago

Collapsed crane was erected day before tragedy

Wolffkran worker still seriously injured in hospital after 85-year-old woman killed
4 days ago

London council calls up firms for £6.8bn works deal

Tower Hamlets 10-year dynamic purchasing deal will cover new housing, schools and regeneration schemes
3 days ago

Arup to cut 350 UK jobs

Job cuts among 6,000 strong UK workforce to hit next month
4 days ago

Green light for £230m Sky Studios Elstree

BAM, Lendlease and VolkerFitzpatrick understood to be in running for main contract
4 days ago

M&E contractor Ilec goes into administration

Specialist goes down after sharp drop in turnover
3 days ago

Morgan Sindall starts up Salford resi tower project

Work on 23-storey apartment block reignites New Bailey scheme
4 days ago

Amey appoints former Murphy boss as transport chief

Peter Anderson to head-up Transport Infrastructure business
4 days ago

Woman killed in London crane collapse

Four others injured as jib crashes through roof of houses next to modular building site
5 days ago

Bellway asks subcontractors for 5% rate cut

House builder wants suppliers to drop prices from next month
4 days ago

Esh Group unveils 8% staff cut

Nearly 70 jobs to be cut from 840-strong workforce
4 days ago

Bouygues wins £250m London hospital expansion

Evelina London children’s hospital embarks on next phase of development plans
5 days ago

House builders returning to full productivity on site

Vistry reports falling supply chain prices while Persimmon says forward sales up 15%
4 days ago

Firms to get £1,000 for every worker brought off furlough

Plan for jobs promises £6,500 for work placement kickstarters and £2,000 for apprentices
5 days ago

£3bn green boost as construction leads Covid recovery

Investment for energy efficient retrofitting and stamp duty holiday to boost housing market
5 days ago

Law firm caps fees for smaller construction disputes

Fixed-fee adjudication service will not see legal bills for contractors rise above £5,000
5 days ago

Top contractors orders down 44% over three months

Wates tops June contracts league with major high-rise flats order
5 days ago

£110m Dagenham film studio complex approved

Council regeneration company seeking film partner to start the project rolling
5 days ago

North East carbon capture project to create 5,500 jobs

Construction of £1.8bn project to run for four years
5 days ago

U+I cuts capital spending by £33m

Work scaled back in coming year but developer bullish about longer term prospects
5 days ago

Driver killed as concrete smashes through windscreen

Police hunt for lorry shedding its load
5 days ago

Argent chief to head Oxford Uni £4bn housing partnership

Anna Strongman takes over as CEO of Oxford University Developments in September
6 days ago

Taziker lands £24m Bristol station refurb contract

First major overhaul of Temple Meads for 25 years
6 days ago

Plan for £600m North Wales tidal energy lagoon

It is hoped the scheme could be given the green light by 2023
6 days ago

Keep the industry updated by joining the Enquirer Directory

Membership lets construction know you are open for business now or in the future
2 years ago

Contractor services