Balfour Beatty Plc's (LSE:BBY) interim results this coming Wednesday, August 14 will arrive hot on the heels of major cutbacks to construction projects announced by Britain’s new government.
Shares in the FTSE 250 infrastructure group had taken a hit on the news of government cuts, which Chancellor Rachel Reeves revealed in her first Commons speech in a bid to bolster government finances.
Though not involved in the key Stonehenge tunnel cancelled by Reeves, investors will be awaiting any news on Balfour’s outlook after a series of other road and railway schemes were also scrapped.
That said, Balfour signalled a solid start to the year in a May update, noting progress made on key projects, including electricity transmission projects across northern Scotland, a letter of intent for work on BP and Equinor’s Teeside power and carbon capture plant, and selection to aid Rolls-Royce’s upgrades at its Derby submarine plant.
Balfour noted trading had been in line with expectations at the time, anticipating cash for 2024 should be similar to the £842 million on hand at the end of 2023.
Shares are up 17% this year so far despite the setback after Reeve’s announcement.