Balfour Beatty FY21 Profit Climbs, Lifts Dividend; Sees Profit Growth; Stock Up
Shares of Balfour Beatty plc were gaining around 4 percent in the morning trading in London after the Infrastructure group reported significantly higher profit in its fiscal 2021, despite weak revenues. The full year results were ahead of expectations.
Further, the company said its Board recommended full year dividend 9.0 pence per share, up from last year’s 1.5 pence per share. The company also announced next phase of multi-year share buyback program of 150 million pounds for 2022.
Looking ahead for fiscal 2022, the company said its Board’s expectations are that its earnings-based businesses, such as Construction Services and Support Services, will deliver further profit growth in 2022.
At Infrastructure Investments, Balfour Beatty will continue to divest assets and make new investments in line with its capital allocation framework.
For 2023 and beyond, the company projects profitable managed growth and sustainable cash generation.
For fiscal 2021, pre-tax profit climbed to 87 million pounds from last year’s 48 million pounds.
Basic earnings per share were 21.3 pence, up from 4.4 pence a year ago.
Underlying pre-tax profit was 187 million pounds, compared to 36 million pounds last year. Underlying earnings per share were 29.7 pence, compared to 3.7 pence a year ago.
The company recorded continued recovery in underlying profit from operations at 197 million pounds, up from prior year’s 51 million pounds. Underlying PFO from earnings-based businesses was 181 million pounds, ahead of expectations, and up from 75 million pounds last year. It is also 5 percent ahead of pre-pandemic levels in 2019.
Revenue declined to 8.26 billion pounds from prior year’s 8.59 billion pounds. Underlying revenue also declined from last year to 8.28 billion pounds.
Order book was 16.1 billion pounds, down from 16.4 billion pounds a year ago.
In London, Balfour Beatty shares were trading at 241.60 pence, up 4.23 percent.
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