Balfour Beatty revenues and dividends up 6 per cent

15 Aug 2012 | News - Comment now

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Balfour Beatty revenues and dividends up 6 per cent

The UK’s largest construction company, Balfour Beatty (LON:BBY), has defied a weakening home market to post positive results for the first half of the year.

Between January and June the group’s revenues were over £5.5 billion, 6 per cent higher than in the equivalent period of 2011. Underlying profit increased by 15 per cent to £156 million.

Ian Tyler, the chief executive, explained that the company was ‘making good progress on the early stages of our growth strategy in key industry verticals where our deep asset knowledge differentiates us from the competition’.

The growth strategy is diversification. Historically a British builder, Balfour Beatty has moved into project management and global markets.

In the firm’s construction division, for example, it says its ‘UK order book and revenue have declined by 3 per cent and 2 per cent respectively in the first half, in a marketplace that has continued to shrink’.

But in its professional services operations, Balfour Beatty pointed to its ‘higher growth regions in the Middle East, Africa and Asia’.

Tyler expressed his confidence that the company was ‘well placed to take full advantage of the global growth in infrastructure markets’.

Balfour Beatty also used the announcement to increase its interim dividend by 6 per cent, to 5.6p per share.

Investors looked upon the results favourably, with Balfour Beatty’s share price up 1 per cent to 297.2p.

Related topics: Balfour Beatty, Construction industry, UK Economy

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