Balfour Beatty predicts “managed growth” for 2022

As part of their trading update, and ahead of their Annual General Meeting, Balfour Beatty say they remain confident that they will deliver “managed growth” in 2022.

The company say that the findings show that “overall trading has been in line with expectations”. (Photo: Balfour Beatty)

The trading update, which focuses on the period 1 January 2022 to date has revealed that the company’s order book was £15.6 billion at the end of March, compared to £16.1 billion at the end of 2021.

The latest update includes several key projects that Balfour Beatty have been awarded, including the US$698 million  Fort Meade design and construct contract in Maryland that they were awarded by the US Army Corps of Engineers

The company say that the findings show that “overall trading has been in line with expectations, including continued strong cash performance.”

Up to the end of April this year, the average monthly closing net cash balance increased to around £800 million, which shows strong growth when compared to the average for 2021 of £671 million. 

For Construction Services, the company are anticipating that despite pandemic related restrictions remaining in place in Hong Kong, operational performances are running in line with expectations. In the UK and US markets, the company are predicting standard margins of 2-3% and 1-2% margin for the 2022 full year respectively.

The power, road and rail maintenance businesses are in line with the margin target of 6-8%, despite being on a slightly lower revenue base following the strategic withdrawal from the gas and water sector.

For Infrastructure Investments, the company has revealed that several asset investment opportunities are in the pipeline.

Leo Quinn, Balfour Beatty Group Chief Executive, said, “We remain confident that the Group is well positioned for 2022 and beyond. Our business portfolio has been transformed to focus on the growing infrastructure markets of the UK, US, and Hong Kong – each underpinned by strong government investment programmes.”