Balfour Beatty plc (LON:BBY) said full-year operating profit will be slightly ahead of expectations, with the construction group's year-end order book “significantly” higher.
Orders will top £14bn at the end of the calendar year, well up on the £12.6bn recorded at the end of December 2018, even without including work won on the HS2 civils or station contracts, to be added when the project receives the green light.
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Revenue is expected to be 5% higher, the FTSE 250 group said in a year-end update, with profit from operations broadly flat and average monthly net cash to come in at £310mln, ahead of guidance.
Broker Peel Hunt upped its profit before tax forecast to £200mln from £165mln, lifting earnings per share to 26p from 21p.
“In common with the wider sector, the shares remain under considerable pressure,” analysts at said in a note.
“However, we sense with the current market backdrop and momentum there could be scope for further strategic and operational outperformance.”
Shares were up 4% to 238.6p on Thursday morning.