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Builders and building materials

Balfour Beatty hikes dividend after swinging to half-year profit

Full-year profits are already expected to reach 2019 levels

Balfour Beatty plc (LSE:BBY) (BBY) has hiked the interim dividend after swinging to a half-year profit.

The builder said its outlook remains positive as governments are pouring more money into infrastructure and sustainability to stimulate economic recovery and cope with political changes.

READ: Balfour Beatty resumes disposals from its £1.1bn infrastructure investments asset portfolio

Full-year underlying profit from operations is expected to reach 2019 levels, while the margin for the support services segment was raised from 3-5% to 6-8%.

The interim dividend was declared at 3p per share, 43% above the 2019 distribution.

In the six months to 2 July, underlying profit from operations was £60mln from a £14mln loss last year, with revenue broadly flat at £4.1bn. The order book stood at £16.1bn from £17.5bn a year ago.

The support services segment delivered a strong performance, benefitting from end of contract gains and exit from the gas and water sector.

The construction services arm was hit by private sector property projects in central London.

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