Balfour Beatty has signalled its confidence in future growth prospects, with Britain’s largest construction company launching its third share buy-back scheme in three years.
The FTSE 250 company has benefited from having long-term major contracts in place and a spread of work in the UK, US and Hong Kong, making it less exposed to difficulties contractors that rely on housebuilding are facing.
Balfour Beatty said revenue in 2022 improved to £8.9 billion from £8.3 billion.
The firm, involved in HS2 and Thames Tideway work, saw pre-tax profit increase to £287 million from £87 million.
Balfour Beatty added that there has been an 8% increase in its order book which stands at £17.4 billion, helped by an increase in the UK construction order book.
It announced a £150 million share buyback. Chief executive Leo Quinn said: “The board’s confidence in both the short and longer term is reflected in its commitment to a multi-year programme of strong shareholder cash returns.”
The shares gained 8.5p, or 2.5%, to 349.1p.
A note from Jefferies said the statement confirms Balfour Beatty “remains in a strong demand environment, with a de-risked order book, supporting steady cash returns”.
