Covid-19 drags Balfour Beatty into first half loss
In the first half of the year, Balfour Beatty recorded a loss of £26 million primarily due to Covid-19. The Groups says the effects of the pandemic will pass and going forward the Group’s forward order book was over 20% higher than at the end of 2019.
COVID-19 had a significant impact on the Group’s performance. In the UK, sites were closed in Scotland and London and projects have been put on hold in the aviation sector. Overseas work stopped and sites were closed in the USA. While in Hong Kong sites did not close but productivity was affected.
In Support Services, many of the Group’s employees were designated as key workers and, while profit from operations was negatively impacted, the business has shown good resilience.
The 20% increase in the order book was helped with the addition of over £3 billion of HS2 contracts. Balfour Beatty is in joint venture with VINCI to deliver the main civils works south of Birmingham and the London hub station at Old Oak Common. The half year order book totalled £17.5 billion (FY 2019: £14.3 billion).
Leo Quinn, Balfour Beatty Group Chief Executive, said: “We have kept sites open wherever safe to do so, prioritised supply chain payments and supported staff. Our people’s response has been outstanding, working tirelessly whatever the challenge, to enable Balfour Beatty to provide the daily infrastructure relied on by the public.
“The financial impacts of COVID-19 are unavoidable; but they will pass. Since the start of Build to Last, our balance sheet, order book and expert capability are at record levels. We look forward with confidence to returning to profitable managed growth, and to delivering ongoing value for all our stakeholders.”
