Proactiveinvestors United Kingdom Balfour Beatty plc Proactiveinvestors United Kingdom Balfour Beatty plc RSS feed en Mon, 22 Jul 2019 15:42:44 +0100 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[News - Balfour Beatty appoints lawyers to investigate allegations about US air base ]]> Contractor Balfour Beatty plc (LON:BBY) has hired a US law firm to investigate allegations pursued by presidential candidate Senator Elizabeth Warren about a US Air Force contract.

The FTSE 250 company’s resident housing arm, Balfour Beatty Communities, has appointed law firm Hunton Andrews Kurth, the Financial Times reported on Monday. 

READ: Balfour Beatty jumps as transformation plan helps lift profits in 2018

Democrat Senator Warren has been pushing for an official inquiry into the UK company’s conduct after a Reuters-CBS report alleged that Balfour Beatty falsified maintenance records at Oklahoma’s Tinker Air Force Base in order to help it secure contract bonuses.

One official set of electronic records listed prompt responses to maintenance requests, while another handwritten log showed the company consistently took much longer to finish jobs.

“The Air Force was allowing this to happen, and failing to use its oversight authority to protect residents and taxpayers,” Warren wrote in a letter to the US Air Force last month. 

Balfour won a 50-year contract to manage the Tinker base in 2008, as part of a private finance initiative contract worth $410mln to manage thousands of family homes across three US air force bases.

Balfour Beatty said: “We take the allegations in relation to Tinker Air Force Base very seriously as they would contravene our company-wide code of conduct.

“The allegations made do not reflect the culture or the work ethic of over 1,200 employees across Balfour Beatty communities who are dedicated to maintaining the highest standards of conduct and service at all the military facilities for which we are proud to be responsible.”

Balfour Beatty generated US$33mln income from its US military housing business in 2018.

Mon, 15 Jul 2019 09:22:00 +0100
<![CDATA[RNS press release - Holding(s) in Company ]]> Thu, 11 Jul 2019 15:00:01 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Wed, 10 Jul 2019 15:00:04 +0100 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 10 Jul 2019 09:00:05 +0100 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 26 Jun 2019 16:00:01 +0100 <![CDATA[RNS press release - Holding(s) in Company ]]> Thu, 13 Jun 2019 09:00:01 +0100 <![CDATA[RNS press release - Holding(s) in Company ]]> Mon, 03 Jun 2019 16:30:04 +0100 <![CDATA[RNS press release - Block listing Interim Review ]]> Mon, 03 Jun 2019 16:00:03 +0100 <![CDATA[RNS press release - Holding(s) in Company ]]> Mon, 03 Jun 2019 10:53:49 +0100 <![CDATA[News - Balfour Beatty joint venture conditionally selected to deliver $1.7bn Interstate 635 LBJ East project in Texas ]]> Balfour Beatty plc (LON:BBY) shares rose on Friday after the infrastructure company revealed that a joint venture it is part of has been conditionally selected to deliver the $1.7bn (£1.3bn) Interstate 635 LBJ East project on behalf of the Texas Department of Transportation.

The FTSE 250-listed firm said the works would include the reconstruction and widening of 11-miles of the interstate highway around the north and east of Dallas, including the I-30 interchange, as well as the construction of service roads and numerous intersection improvements along the route.

READ: Balfour Beatty selected as preferred bidder for £1.5bn Network Rail contract

The UK company noted that it has a 45% share in the joint venture, with US firm Fluor Corporation holding 55%.

The group said the full contract award is expected in autumn 2019 with works due to commence in early 2020, and substantial completion scheduled for late 2024. At construction peak, the joint venture will employ a workforce of around 500.

When complete, the interstate highway will consist of 12 lanes in total, widening the general-purpose lanes from eight to ten as well as two reconstructed existing, tolled managed lanes, it added.

Leo Quinn, Balfour Beatty’s group chief executive, commented: "Following the successful delivery of the Dallas Horseshoe project, and the continued delivery of the Southern Gateway project, this latest contract award from the Texas Department of Transportation demonstrates our market leading capabilities.  

"With over half of Balfour Beatty's construction revenue generated from our US operations, we continue to strengthen our business, benefiting from strong competitive positions in our chosen large and growing infrastructure markets."

In mid-morning trading, Balfour Beatty shares were 0.3% higher at 234.40p.

Fri, 31 May 2019 10:29:00 +0100
<![CDATA[RNS press release - Balfour Beatty JV secures $1.7bn US road contract ]]> Fri, 31 May 2019 07:13:07 +0100 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 29 May 2019 16:30:01 +0100 <![CDATA[RNS press release - Board Committee Membership Change ]]> Wed, 22 May 2019 15:31:11 +0100 <![CDATA[RNS press release - Result of Meeting ]]> Mon, 20 May 2019 10:00:27 +0100 <![CDATA[RNS press release - Result of AGM ]]> Thu, 16 May 2019 16:30:01 +0100 <![CDATA[RNS press release - Balfour Beatty AGM Trading Update ]]> Thu, 16 May 2019 07:00:05 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Thu, 18 Apr 2019 15:00:02 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Mon, 15 Apr 2019 09:00:01 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Thu, 04 Apr 2019 16:15:52 +0100 <![CDATA[RNS press release - Annual Report 2018 and Notice of Meeting 2019 ]]> Thu, 04 Apr 2019 09:35:54 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 02 Apr 2019 16:07:49 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Fri, 29 Mar 2019 16:04:54 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Fri, 22 Mar 2019 09:17:50 +0000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Thu, 21 Mar 2019 12:40:46 +0000 <![CDATA[News - Balfour Beatty selected as preferred bidder for £1.5bn Network Rail contract ]]> Balfour Beatty plc (LON:BBY) has been selected as the preferred bidder for a £1.5bn contract with Network Rail to upgrade tracks across London and East Midlands.

Under the so-called Central Track Alliance contract, the infrastructure group would be responsible for the development, design and delivery of track renewals and crossings across London North West, London North East and East Midland routes.  

READ: Balfour Beatty jumps as transformation plan helps lift profits in 2018

Balfour, which has an 80% stake in the 10-year alliance, would also look after the associated infrastructure works.

The company said it expects a full contract award to be confirmed in the second quarter of 2019 and works to begin later this year.

"As one of the UK's leading rail infrastructure suppliers, Balfour Beatty is proud to be part of the alliance appointed to ensure the reliability of the UK's rail network,” said chief executive Leo Quinn.  

"We believe that industry collaboration is the way to drive higher efficiency and service standards. Network Rail's new alliance model is a great step forward in rail contract procurement."

Thu, 14 Mar 2019 08:22:00 +0000
<![CDATA[RNS press release - BALFOUR BEATTY PREFERRED BIDDER ON £1.5BN CONTRACT ]]> Thu, 14 Mar 2019 07:00:10 +0000 <![CDATA[News - Balfour Beatty jumps as transformation plan helps lift profits in 2018 ]]> Balfour Beatty plc (LON:BBY) shares jumped in early trading Wednesday after full-year profits rose on the back of results from its transformation plan.

The FTSE 250 construction firm reported a rise in underlying pre-tax profit to £181mln from £165mln in the year ended 31 December 2018, although underlying revenues fell to £7.8bn from £8.2bn.

READ: Balfour Beatty raises full-year guidance as it pockets gains from disposals

Balfour’s order book meanwhile increased to £12.6bn from £11.4bn in 2017 while the final dividend was increased 33% to 3.2p per share, taking the total for the year to 4.8p from 3.6p.

The results were broadly in line with updated forecasts issued in December after Balfour pocketed gains from several disposals as part of its restructuring efforts.

The company’s chief executive, Leo Quinn, said during the second half of 2018 the company had achieved “industry standard margins” and that it would perform in line with market expectations for 2019.

Turnaround strategy

Quinn has been spearheading the turnaround strategy at Balfour, known as Build to Last, which was first launched in 2015 and included the goal of winning higher margin contracts as well as inward investment.

The firm also said it had contingency plans in place for any uncertainty arising out of Brexit, adding that it had been planning for all outcomes.

George Salmon, equity analyst at Hargreaves Lansdown, said the firm’s net cash position of £337mln at the end of the year and the “impressive” infrastructure portfolio meant the company’s balance sheet was strong and there was “plenty of infrastructure business around on both sides of the Atlantic”.

However, he added that “a pragmatic investor would demand more” from the company.

“Margins have improved to at or above industry norms, but they’re still in the low single-digit percentages and the downfall of Carillion is a constant reminder of how little room for error there is in this industry.”

In a note to clients, analysts at broker Liberum said the results had come in ahead of their expectations with the £181mln profit figure beating their forecast of £178mln.

They also maintained their ‘Buy’ rating and 350p price target on the stock and maintained forecasts of 3% sales growth in 2019.

Shares were up 0.9% at 288.5p.

Wed, 13 Mar 2019 09:44:00 +0000
<![CDATA[RNS press release - BALFOUR BEATTY PLC RESULTS FOR FULL YEAR 2018 ]]> Wed, 13 Mar 2019 07:00:02 +0000 <![CDATA[RNS press release - Board Committee Membership Change ]]> Mon, 11 Mar 2019 15:57:15 +0000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 19 Feb 2019 14:39:35 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Mon, 11 Feb 2019 16:56:52 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Thu, 24 Jan 2019 09:35:20 +0000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Thu, 17 Jan 2019 15:07:26 +0000 <![CDATA[RNS press release - Board Committee Membership Change ]]> Wed, 19 Dec 2018 10:39:54 +0000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 18 Dec 2018 16:18:16 +0000 <![CDATA[RNS press release - Block listing Interim Review ]]> Tue, 18 Dec 2018 12:12:19 +0000 <![CDATA[News - Balfour Beatty raises full year guidance as it pockets gains from disposals ]]> Balfour Beatty PLC (LON:BBY) raised its guidance for the year following the disposal of further assets from its infrastructure investments arm this month as part of a wider restructuring plan.

The infrastructure group said it estimates profit from disposals will amount to about £65mln so now expects its full-year performance to be ahead of its previous forecast.

Following the disposal of its interest in Fife Hospital for £43mln in September, the group expects to sell an 80% stake in the Edinburgh University student accommodation project for £24mln.

Stronger balance sheet

The company also lifted its estimates for 2018 average money net cash to £185mln from the previous £140mln to £170mln range predicted.

The group said it had strengthening its balance sheet after completing the repayment of its £252.7mln convertible bond from available cash resources, which has reduced gross debt by 45%. Net cash is expected to be broadly flat from the prior year.  

READ: Balfour Beatty aims to reassure on debt situation, says completed repayment of £252.7mln convertible bond

At year-end, the order book is forecast to be £12bn, up from £11.4bn last year.

Revenue in the second half of the year is likely to be flat compared to the first half when revenue fell to £3.8bn from £4.2bn last year.

Under its so-called “Build to Last” strategy, the firm is being selective about the contracts it takes on. Balfour Beatty said the contracts must be on the “right terms and at appropriate margins, which reflect the bidding discipline and risk management introduced under Build to Last”.

Margins across businesses to meet industry standards

Its UK construction division is estimated to deliver second-half margins of 2-3%. The Aberdeen Western Peripheral Route project the company is working on with Galliford Try is expected to be completed this year.

Following the collapse of Carillion in January, Balfour Beatty and Galliford Try became the remaining joint venture partners in the project. 

In the US construction unit, second half revenue is projected to be in line with the first half and profit from operations is forecast to show further improvement, meeting the industry standard target range of 1-2%.

Profit from operations in the support services business is expected to grow with the margin in line with the 3-5% industry standard target range. A strong performance in transportation, particularly the road maintenance unit, has been partly offset but by weakness in utilities.

READ: Balfour Beatty hikes interim dividend 33% as it sounds confident note on outlook

“We are on track to deliver our Build to Last Phase Two goal of achieving industry standard margins in all earnings based businesses in the second half of 2018,” said chief executive Leo Quinn.

"The actions we have taken since the start of 2015 have created a strong foundation for the future. “

He added: “We have consistently invested in our capabilities, systems and leadership while de-risking the business, strengthening the balance sheet and selectively building the order book.

"Going forward, we aim to drive market-leading performance by using the disciplines we have instilled to translate Balfour Beatty's expert capabilities into long-term profitable growth."  

Shares rose 3.6% to 255p in morning trading.

Balfour Beatty a 'clear buy', says Peel Hunt 

Peel Hunt said the stock is a "clear buy within an undervalued sector".

"In common with the wider sector, the shares have been under considerable pressure," it said. 

"However, it is clear that the current management team has successfully moved into the final Phase of the Build to Last programme (achieving premium industry margins and maximising portfolio value).

"We sense with the current market backdrop and momentum there could be scope for further strategic and operational outperformance."

Fri, 14 Dec 2018 07:43:00 +0000
<![CDATA[RNS press release - BALFOUR BEATTY TRADING UPDATE ]]> Fri, 14 Dec 2018 07:00:02 +0000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 04 Dec 2018 16:10:34 +0000 <![CDATA[News - Balfour Beatty aims to reassure on debt situation, says completed repayment of £252.7mln convertible bond ]]> Balfour Beatty PLC (LON:BBY) revealed on Tuesday that it has completed the repayment of its £252.7mln convertible bond from available cash resources, aiming to reassure investors in the wake of fears over a debt crunch for infrastructure lenders.

Last Friday, Balfour’s FTSE 250-listed peer Kier Group PLC (LON:KIE) announced plans to raise around £264mln via a rights issue to accelerate its net debt reduction plans and strengthen its balance sheet.

READ: Kier Group shares plunge as FTSE 250-listed firm taps shareholders for around £264mln via a rights issue

Kier said it was raising the cash because it believes that the risks associated with its net debt position have recently increased, adding that the cash call will better position the group in light of tighter credit markets and more stringent tender pre-qualification requirements.

Haydn Mursell, Kier’s chief executive had commented: "There has been a recent change in sentiment from the credit markets towards the UK construction sector, with various lenders indicating that they will be reducing their exposure to the sector.

“This has led to lower confidence among other stakeholders and an increased focus on balance sheet strength. The Rights Issue is intended to address these issues, better position Kier to continue to win new business and further strengthen our market leading positions."

Balfour says 45% of net debt paid down

To help allay fears over its own position, in its brief statement on Tuesday, Balfour Beatty said that as a result of the convertible bond repayment, it has now paid down 45% of its gross debt in the last 12 months.

In a note to clients following Balfour’s statement, analysts at Liberum Capital noted that this repayment was planned and said it should generate £12mln to £13mln in annualised pre-tax savings, which are already in their estimates.

After this, the Liberum analysts added, Balfour will have around £340mln of gross debt, but they expect the firm to make no repayments in 2019, given they have only made whole payments.

However, they pointed out that in full-year 2020, it will be possible to redeem US$45mln of US loans in March and £112mln of preference shares in July, with the next maturity for US$200mln of US Loans being in 2023.

Bank credit harder over last two years

The analysts noted that Balfour believes that bank credit has become harder in the last two years, not necessarily the last two months.

However, they added, the mid-cap has observed that Network Rail requires its suppliers to pay their suppliers within 28 days, indicating that there is a clear industry trend towards faster payment of supply chains.

The Liberum analysts said they continue to believe that Balfour’s balance sheet strength - including its £1.2bn PPP (public-private partnership) portfolio - is a source of competitive advantage.

They expect Balfour’s trading statement, due on 14 December to indicate that the group is on track for industry standard margins in the second-half.

The analysts concluded that Balfour’s current year P/E (price earnings of 11.2x is attractive given the PPP portfolio and recovery potential.

Liberum reiterated a ‘buy’ rating and 350p target price on Balfour’s shares, which in late morning trading on Wednesday were 0.6% lower at 243.20p.

Tue, 04 Dec 2018 11:50:00 +0000
<![CDATA[RNS press release - BALFOUR BEATTY COMPLETES REPAYMENT OF £253M BOND ]]> Tue, 04 Dec 2018 07:00:12 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Tue, 20 Nov 2018 15:26:25 +0000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Fri, 16 Nov 2018 07:45:58 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Mon, 12 Nov 2018 13:57:34 +0000 <![CDATA[News - Balfour Beatty wins £425mln of motorway build work ]]> Balfour Beatty plc (LON:BBY) has picked up contracts worth £425ml to design and build Britain’s next generation of motorways and A roads.

The contractor has been selected for the B6 contract in the south-east, worth up to £1.1bn, and B8 in the north, worth £2bn.

READ: Balfour Beatty appointed to two new civil engineering frameworks with combined total revenue value of up to £2.1bn

Balfour Beatty’s contracts are for the initial phases of work on the six-year frameworks with future packages of work to be awarded based on performance. 

At construction peak, Balfour Beatty will employ 250 people, of which 5% will be apprenticeships.



Wed, 07 Nov 2018 08:16:00 +0000
<![CDATA[RNS press release - BALFOUR BEATTY SECURES £425M HIGHWAYS ENGLAND WORK ]]> Wed, 07 Nov 2018 07:00:05 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Tue, 06 Nov 2018 15:13:22 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Mon, 05 Nov 2018 09:12:26 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Thu, 25 Oct 2018 16:46:06 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Wed, 17 Oct 2018 18:27:03 +0100