NATIONAL (August 12, 2020)—United Kingdom-based general contractor Balfour Beatty reported its half-year 2020 results this week. The firm reported a 26 million pound ($34 million) loss in Q1 and Q2 of 2020, mostly attributed to the impact of the ongoing coronavirus pandemic.
However, Balfour Beatty leadership was positive about its prospects for the rest of the 2020, citing the infrastructure segment as a potential comeback area for the company. Here's the high points from the announcement:
- Underlying loss from operations (PFO) at £14 million, or $18.3 million (2019: £72 million profit), principally due to impact of COVID-19
- Half year net cash at £563 million, or $737.3 million (FY 2019: £512 million); average net cash at £507 million, or $664 million (FY 2019: £325 million)
- In March, repaid $46 million of US private placement notes; in July, fully redeemed £112 million of preference shares
- Group order book increased over 20% to £17.5 billion (FY 2019: £14.3 billion; HY 2019: £13.2 billion)
- Directors’ valuation of Investments portfolio maintained at £1.1 billion (FY 2019: £1.1 billion; HY 2019: £1.2 billion)
- Given chosen markets recover as expected, 2021 PFO outlook for earnings-based businesses broadly in line with 2019
Balfour Beatty Group Chief Executive Leo Quinn said, “Since the COVID-19 crisis broke, our mission has been to safely manage through it while protecting the group’s strengths. That meant balancing the needs of all our stakeholders. We have kept jobsites open wherever safe to do so, prioritized supply chain payments and supported staff. Our people’s response has been outstanding, working tirelessly whatever the challenge, to enable Balfour Beatty to provide the daily infrastructure relied on by the public.
“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 5 years," he continued.
To read the 2020 half year results announcement in full please click here.