Balfour Beatty has revealed a strong set of financial results for 2018, with profits and orders value and debts slashed.
The contractor said underlying pretax profits were £181M, up from £165M in 2017.
The group’s order book also jumped 11% from £11.4bn in 2017 to £12.6bn at the end of 2018.
In December the international infrastructure group also paid off £252.7M in convertible bonds. The bonds were issued in 2013, when Balfour Beatty was on a less stable financial footing.
Balfour chief executive Leo Quinn said that a push for standardisation within the group helped reduced costs and drive growth. “These results demonstrate the value being created through Build to Last. We continue to strengthen the group and meet our targets,” he said.
“But Balfour Beatty’s transformation goes well beyond resolving the issues of forced growth. We have relentlessly invested in capability and leadership to forge a culture which provides sustainable competitive advantage through standardisation of our systems and processes, on a reducing overhead base.”
“This gives us a scalable platform to drive profitable managed growth. With this internal momentum and our positions in large growing infrastructure markets, we are well placed to deliver market leading performance.”
Despite the positive financial results, the past 12 months have been far from plain sailing for Balfour Beatty. Concerns about work on the Aberdeen Western Peripheral Route have been expressed. The contractor carried this out in a joint venture with Galiford Try. The award of the £500M energy-from-waste plant in Gloucestershire contract to Urbaser Balfour Beatty JV s facing legal challenge.
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