Balfour Beatty鈥檚 2022 revenue was up 8% at 拢8,931m (2021: 拢8,263), with a pre-tax profit of 拢287m (2021: 拢87m).
Underlying profit from operations was up 42% at 拢279m (2021: 拢197m).
The UK construction operation, which ran at a loss in 2021, appears to have been turned around.
Balfour Beatty鈥檚 UK construction business made an operating loss of 拢2m in 2021 on revenue of 拢2,593m. In 2022 it made a profit of 拢59m on revenue of 拢2,763m, at an operating margin of 2.1%.
Balfour Beatty still does most of its business overseas, generating 拢3,651m revenue and 拢58m operating profit from the USA last year, plus 拢1,068m revenue and 拢32m operating profit in Hong Kong, through its Gammon joint venture with Jardine Matheson
The order book grew by 8% in the year to 拢17.4bn (2021: 拢16.1bn) and is now 90% target-cost or cost-plus contracts, rather than riskier fixed-price contracts.
This order book does not include the 拢1.2bn Lower Thames Crossing project (Essex roads package) awarded in January 2023 or the seven-year 拢297m contract for highways maintenance in East Sussex because contracts have yet to be formally signed.
The UK construction order book grew by 9% to 拢6.1bn (2021: 拢5.6bn) and is 95% for public sector and regulated industry clients (2021: 91%).
Group chief executive Leo Quinn said: 鈥淭he strong results in 2022 are a testament to Balfour Beatty鈥檚 transformation into a well-balanced and lower risk group. The diversified portfolio, both geographically in the UK, US and Hong Kong, and operationally across Construction Services, Support Services and Infrastructure Investments, plus the strength of our balance sheet and cash management, have provided the resilience for the group to deliver ahead of expectations and grow our order book through the global instability seen in 2022.
鈥淭he board鈥檚 confidence in both the short and longer term is reflected in its commitment to a multi-year programme of strong shareholder cash returns. We believe that Balfour Beatty鈥檚 unique capabilities and the positive outlook in its chosen markets will enable it to deliver ongoing profitable managed growth.鈥�
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