Firm says order book stands at over £17bn
Profit at Balfour Beatty more than doubled in the first half as the firm put a series of problem London residential schemes behind it.
The jobs, which are believed to include a £200m upmarket residential scheme at Curzon Street in Mayfair for Brockton Capital and a £110m scheme to build a 43-storey block called Providence Tower for Ballymore, blew a £23m hole in the firm’s UK construction accounts for the first half of last year.
But the country’s biggest contractor said this part of the business had moved back into the black with an £18m profit in the first six months of 2022.
The firm said group pre-tax profit for the period to the end of June rose from £35m to £83m. It added that it also booked a net credit of £18m which included a tax credit of £20m. Revenue was flat at £4.1bn.
It said its US construction business, which has been carrying out improvement work at Los Angeles airport, edged profit up 5% to £21m while its Hong Kong-based Gammon business also saw profit rise 11% to £10m.
The firm said its UK construction business was on track to deliver margins of 2% to 3% by the end of the year.
Balfour’s order book stands at £17.7bn with the firm saying that average net cash for 2022 was expected to be between £740m and £780m.
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