Balfour Beatty has announced its results for the full-year ended 31st December 2016, showing a 15% increase in the value of its order book and underlying revenue up 4% to £8.5 bn.
The post-referendum fall in the value of sterling has boosted the company, with constant exchange rate figures showing a much smaller order book rise and a fall of underlying revenue.
The figures show the group returned to profit following two years of losses, with an underlying profit from operations (PFO) of £67m.
Balfour Beatty also says it has significantly exceeded 24-month Phase One targets with £439m cash in: £123m cost out, improved risk management and order book from strengthened governance and increased customer satisfaction.
It says the market outlook in the medium and long term are “favourable”.
Leo Quinn, Group Chief Executive, commented, “The transformation of Balfour Beatty is well underway. We have returned the Group to profit and significantly exceeded our Build to Last Phase One targets. We have upgraded leadership, processes and controls while continuing to invest in the Group’s unique strengths. As a result, we have improved not just the quality of our order book but our customer satisfaction scores.
“Having simplified the Group, we are focused on our core markets in the UK and US, where governments are committed to large scale expenditure on infrastructure.
“All this positions us for future profitable growth. During the next two-year phase of Build to Last, we expect to achieve industry-standard margins and over the medium term, industry-leading performance.”