Balfour Beatty hailed a series of contract wins in Aviemore, Edinburgh and Skye as the construction firm unveiled a rise in full-year profits.
Underlying profits climbed to £221 million in the year to 31 December from £205 million in the previous 12 months, marking the first time that margins from its support services and UK and US construction businesses each reached industry standards. Total revenues rose to £8.4 billion from £7.8 billion.
The company picked up a £70 million contract to build the Edinburgh Futures Institute, the University of Edinburgh’s centre that will occupy some of the city’s former royal infirmary buildings. It will also redevelop the Darwin building for the university.
Balfour Beatty also signed a £38 million deal to build two community hospitals in Aviemore and in Broadford on Skye. Further afield, the firm picked up hospital work in Birmingham following the collapse of Carillion, and will upgrade the Leeds outer ring road.
The company welcomed the UK Government’s backing for the High Speed 2 railway line, for which it will build the Old Oak Common station in London and carry out civil engineering work. Chief executive Leo Quinn added: “The group is continuing to pay down around £150 million of borrowings in 2020 and in addition, the board will review Balfour Beatty’s capital structure once there is clearer understanding of the COVID-19 situation.”
The firm’s full-year dividend rose to 6.4p from 4.8p.
