Balfour hopes profits back to “normal” next year after £26m loss

Grant Prior 1 year ago
Share

Balfour Beatty is predicting profits will recover to “normal” levels next year after the impact of Covid-19 saw the contractor post a pre-tax loss of £26m for the first six months of this year.

That compares to a £63m profit last time as turnover rose to £4,118m from £3,884m.

Balfour kept most of its sites open during the pandemic and said its Build to Last programme ensured a resilient response to the crisis.

Group Chief Executive Leo Quinn said: “We have preserved the disciplines, expert capability and financial strength we will need as markets move back to normal and then beyond, driven by fiscal stimulus for infrastructure.

“In achieving this, our systems, processes and leadership have all proved the value of our investments over the last five years.”

Quinn said he expected “the earnings-based businesses to recover steadily through the second half of 2020 and report a more normalised operating profit in 2021, broadly in line with 2019.”

For the full year in 2019 Balfour posted a pre-tax profit of £138m.

UK Construction recorded an underlying loss from operations in the first half of 2020 of £23m compared to a £17m profit last time on turnover down to £986m from £1,014m.

Balfour said: “Covid-19 had a material impact on operations as Scotland was effectively closed for the second quarter of 2020,  London has seen limited productivity due to public transport availability, the South region has been affected by the slowdown in aviation and lengthening site programmes triggered a reassessment of the Group’s contract end forecast positions.”

Balfour confirmed it had claimed £15m in furlough payments from the Government.

Latest news

Construction slavery gang busted – five convicted

Romanian victims were promised £50 a day to work on site but were saddled with false debts
35 mins ago

Race starts for £200m M5 Junction 10 Improvements

Cheltenham junction upgrade will see new roundabout built above the motorway
4 hours ago

New boss at Balfour Beatty Kilpatrick

Will Smith joins from consultant Cummins
5 hours ago

Contractors battle Storm Arwen to replace rail bridge

BAM Nuttall, Atkins WSP Joint Venture successfully completes marathon 78-hour installation
4 hours ago

Bids called for £835m South London council estate upgrade

London Borough of Southwark is on the hunt for four firms to deliver housing estate upgrades
3 hours ago

Willmott Dixon to build £21m net zero Preston school

Tarleton Academy will be net zero in operation
3 hours ago

Veteran pair leave Currie & Brown

End of an era as David Broomer and Euan McEwan retire
4 hours ago

Balfour Beatty launches neurodiverse site cabins

Cabins adapted for visually impaired and light-sensitive builders will become standard on Balfour sites
1 day ago

26 firms win £7bn schools framework – full list

B&K, Willmott Dixon, BAM, Kier and Wates chalk up both northern and southern major project lots
2 days ago

French specialist Matière to install HS2 cut and cover tunnels

Stanton Precast wins pre-cast segment deal for 'green tunnels'
2 days ago

Scottish house builder buys rival for £56m

Springfield buys Tulloch Homes to expand presence in the Highlands
1 day ago

Wates wins contract for underground houses

Construction to start next year on earth sheltered homes in Battle, East Sussex
2 days ago

VAT dodging electrician banned for five years

Company director barred after Insolvency Service probe
2 days ago

£11m in extra brownfield grants awarded – list

Twenty-three sites receive brownfield funding in second tranche of grants
2 days ago

GMI lands £30m helicopter logistic hub

Building work starts on Yeovil hub for manufacturer Leonardo
2 days ago

HS2 Euston team to get architect-designed site huts

Up to 2,500 workers and 150 students could be using the welfare facility on a daily basis
2 days ago

Firms readied for £1.3bn highways surfacing framework

Second supplier day to be held on 2 December ahead of March tender invite
2 days ago

Countryside Properties sets aside £41m for recladding

Progress made towards becoming 100% focused lower risk Partnerships business
2 days ago

BAM pairing takes £26m Sunderland train station

Demolition work will start next year on first phase southern entrance area
2 days ago

Osborne wins £21m London City grade II interior refurb

Work to start in the New Year on 84 Moorgate upgrade
3 days ago

Bouygues bags latest phase of Portobello Square regen

Construction to start next summer on North Kensington site
3 days ago

VolkerFitzpatrick wins £26m storage sheds deal

Firm has delivered several projects at the Daventry International Rail Terminal over 11 years
3 days ago

Massive Stewart Milne development goes into administration

Countesswells new town now in hands of administrators
6 days ago

Race starts for £2.5bn Ministry of Justice framework

Frameworks cover projects up to £30m and are divided into regional lots
3 days ago

London Uni submits North Acton high-rise tower cluster plan

Plans in for eight buildings ranging between 6-32 storeys in North Acton
3 days ago

Galliard forms new partnership to build 850 homes

Work to start on £300m Brimingham and Ipswich developments by next spring
3 days ago

Engineers battle to repair power network after Storm Arwen

Large sections of overhead power lines need to be rebuilt after "worst damage for 20 years"
3 days ago

Leeds £270m Lisbon Square towers approved

Work to start in the Spring on residential and office scheme
4 days ago

Green light for £65m canalside scheme in Wolverhamption

Construction to start next summer on transformation of brownfield site
3 days ago

Ex-Laing O’Rourke boss to head rejigged BAM UK business

BAM names new chief for combined UK and Ireland businesses in growth push
6 days ago

Contractor services