(Alliance News) - Construction firm Balfour Beatty PLC on Wednesday reported a rise in both profit and revenue in the first half of 2019 helped by growth in its construction sector.
The company said it is on track to deliver a full year performance in line with market forecasts.
Revenue, which includes its income from joint ventures, rose by 1% to GBP3.88 billion in the six months to June 28 from GBP3.84 billion a year before. Pretax profit jumped by 26% to GBP63.0 million from GBP50.0 million and on an underlying basis by 14% to GBP64.0 million from GBP56.0 million.
The underlying figure excludes GBP6.0 million in interim costs from health and safety claim settlements, as well as tax charges relating to the amortisation of acquired intangible assets. Last year's underlying figure excluded a net credit of GBP17.0 million representing gains in the company's main pension fund, as well as other one-off items.
Underlying profit in Balfour Beatty's UK construction division more than trebled to GBP17.0 million from GBP5.0 million, driving a 41% overall construction profit rise to GBP45.0 million from GBP32.0 million.
The UK government is a major customer of Balfour Beatty's construction unit and the company also has interests in the transport sector, where it is currently working on the Crossrail project at Whitechapel and Woolwich stations in London, as well as extending London Underground's Northern Line to Battersea.
Underlying profit from support services rose slightly to GBP18.0 million from GBP17.0 million.
Balfour Beatty increased its order book by 4.8% year-on-year to GBP13.20 billion from GBP12.60 billion and raised its interim dividend by 31% to 2.1 pence per share from 1.6p.
Chief Executive Leo Quinn said: "This is another strong set of results - increasing profits backed by a strong cash performance, plus carefully managed growth in our order book. Today, the group's geographic and operational diversity underpins our risk management, with over 50% of our business and investments portfolio assets outside the UK. Combined with the strength of our balance sheet and cash flows, this positions Balfour Beatty to create and return future value to shareholders."
Shares in Balfour Beatty were up 9.1% at 220.20 pence each in London on Tuesday, making it one of the best performers in the FTSE 250 Index.
Balfour Beatty (BBY)