Profits at UK engineering firm Balfour Beatty up 69pc


Balfour Beatty has a joint venture in Ireland with CLG, which undertakes work for Gas Networks Ireland. Photo: PA
Balfour Beatty has a joint venture in Ireland with CLG, which undertakes work for Gas Networks Ireland. Photo: PA

Profits at Balfour Beatty – the UK company that through a joint venture has a €500m contract to install and maintain gas infrastructure across Ireland – saw its underlying profits jump 69pc to £66m (€74m) in the first half of the year.

However, its underlying revenue in the period declined from £4.2bn (€4.7bn) in the first six months of 2017 to £3.8bn (€4.2m) in the first half of 2018.

The group said that while maintaining “disciplined bidding practices”, it grew its order book to £12.6bn (€14.1bn) at the end of the first half of the year.

That was primarily due to wins by its US construction business, including its 30pc share of the $2bn (€2.2bn) Los Angeles Airport automated people mover project.

“All our businesses are now either achieving industry standard margins or on track to do so in the second half,” said CEO Leo Quinn.

“Given the strength of our balance sheet and the board’s confidence that the group’s full-year earnings will meet expectations, we are raising the interim dividend by 33pc and plan to repay the outstanding convertible bonds this year,” he added.

Balfour Beatty plans to repay £214m (€240m) of outstanding convertible notes when they fall due in December.

Balfour Beatty has a joint venture in Ireland with CLG, which undertakes work for Gas Networks Ireland.

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