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(Alliance News) - Balfour Beatty PLC on Thursday said 2022 profit is expected to be ahead of expectations, following positive net interest income and the recognition of deferred tax assets reducing its tax charge for the year.
The London-based construction firm recognised the GBP20 million tax credit in the first half of 2022, compared to a GBP4 million credit the year before. Balfour Beatty did not specify its profit expectation.
Revenue is expected to grow by 5% from GBP8.3 billion in 2021, and the year-end order book is forecast to grow 5% from GBP16.1 billion a year before, due to favourable foreign exchange movements. Balfour Beatty said it continues to de-risk the order book across its portfolio by focusing on projects with the "appropriate" terms and conditions.
Average monthly net cash for 2022 is now forecast to be around GBP800 million, ahead of the previous guidance of between GBP740 million to GBP780 million, as cash performance "continues to be strong".
Balfour Beatty added that once its 2022 share buyback programme is completed this month, over GBP385 million will have been distributed to shareholders via share buybacks and dividends since the start of 2021. This includes over GBP200 million in 2022, and total cash returns are expected to be similar in 2023. Balfour Beatty intends to buy back further shares from January.
"We continue to expect a strong full year operational and financial performance. Looking to 2023 and beyond, our improved, de-risked and diversified order book gives us confidence that we will continue to make progress in delivering profitable managed growth," Chief Executive Leo Quinn said.
Balfour Beatty shares were up 4.0% to 345.00 pence on Thursday morning in London.
By Jaskeet Briah, Alliance News reporter
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