Income from home market tops 拢3bn
A strong performance in the UK helped Balfour Beatty increase its global revenue last year.
The firm reported a 7% increase in revenues worldwide to 拢9.6bn.
Pre-tax profit was down from 拢287m to 拢244m, but the firm said it was expected 鈥渁s gains on investment disposals reduced as planned and the 拢56m tax credit relating to the recognition of additional UK tax losses in 2022 did not repeat鈥�.
The UK鈥檚 biggest contractor saw domestic revenue rise 10% to 拢3.03bn, 95% of which came from public sector and regulated industry clients. Underlying operating profit in the UK increased from 拢59m to 拢69m.
The business said it expected volumes to 鈥済row steeply鈥� in the power business specifically across 2025 and 2026.
鈥淏oth the UK Construction and US Construction order books have remained flat on a local currency basis, which is encouraging given the high interest rate environment faced by customers throughout 2023,鈥� the firm said.
鈥淚n the UK, the proportion of the order book signed on lower risk target-cost or cost-plus contracts compared to higher risk fixed-price contracts remained high at 82%.鈥�
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Balfour Beatty has a 拢16.5bn order book and held an average net cash of 拢700m in 2023, which is expected to be roughly the same this year.
Balfour Beatty chief executive Leo Quinn, who celebrates 10 years in charge next January, said the company鈥檚 results had been 鈥渄riven by our disciplined contract risk management across a geographically and operationally diversified portfolio鈥�.
He added: 鈥淟ooking to 2025 and beyond, we expect our unique capabilities and complex infrastructure project experience to drive further earnings growth, with attractive opportunities being pursued in the UK energy, transport and defence markets and in the US.鈥�
Earlier this month, Balfour was one of several firms to formally sign a memorandum of understanding with Holtec, a US nuclear firm that is looking to develop small nuclear plants and a factory in the UK.
Others to sign on the dotted line were Mott MacDonald and Korean manufacturer Hyundai.
Holtec is one of several companies shortlisted by government-owned Great British Nuclear in a competition to establish the most viable small modular reactor designs.
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