Balfour Beatty’s results have exceeded expectations and prompted a £150m share buyback programme, the company said today.
In the year ended 31 December, the company’s profits soared 286.3 per cent to £197m, while gains from earnings-based businesses went up to £181m, exceeding analysts’ expectations.
“In 2021, despite the challenges presented by Covid-19, we have delivered operating profits ahead of expectations,” said chief executive Leo Quinn.
In addition to a strong £671m net cash performance, the group reported a higher quality order book at £16.1bn.
“Balfour Beatty emerges from the last two years with capabilities intact and a higher quality order book,” he added. “Together these provide the visibility to deliver profitable managed growth and sustainable cash generation.”
To match the results, Balfour Beatty recommended a final dividend of 6p per share, bringing the total recommended dividend for the year to 9p, which is equivalent to £57m.
“The group has also increased its 2022 share buyback programme from the intention of at least £100m, announced in December 2021, to £150m,” the group said in a statement. “The buyback will commence immediately and is expected to complete during 2022.
“The increased share buyback programme and recommended final dividend announced today will bring the cumulative return to shareholders since the introduction in 2021 of the multi-year capital allocation framework to £367m.”