Balfour Beatty plc (LSE:BBY)’s annual results beat Liberum’s expectations with EPS of 46.8p topping its 42.6p forecast with particular strength in Support Services.
Average net cash of £804mln was in line, but Investments were ahead, as Liberum expected, and pension deficit recovery payments were reduced. As a result the broker has increased its full year 2023 fully diluted EPS estimate by 6% due to higher interest receivable.
Inflation, shortages, and the remaining London problem contracts remain manageable within consensus, Liberum added.
The broker expects further returns to shareholders in 2023 which it estimated at £214mln. Liberum has a buy rating and 475p price target.
Peel Hunt also reiterated a buy rating with a price target 400p. It expects to maintain is 2023 pretax profit forecast at £242mln (above the consensus of £234mln).
Shares in the company rose 2.1% to 347.80p in London on Wednesday.