Construction giant Balfour Beatty has swung to a half-year loss after being hit by the Covid-19 pandemic.
The multinational infrastructure group fell from underlying pre-tax profit of £64m in 2019 to a loss of £26m for the first half of 2020.
Although underlying first-half revenue rose six per cent to £4.1bn, thanks to a strong performance in US construction, underlying loss from operations fell to £14m, compared to £72m profit in 2019.
Balfour Beatty said it expected operating profit to recover through the rest of 2020 and to be in line with 2019 in 2021 if markets recover as anticipated.
The board also said it would look to re-establish its dividend “when appropriate”.
Leo Quinn, Balfour Beatty group chief executive, said: “Since the Covid-19 crisis broke, our mission has been to safely manage through it while protecting the Group’s strengths.
“That meant balancing the needs of all our stakeholders. 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.”
Mr Quinn said the financial impacts of Covid were “unavoidable” - but would pass.
He added: “We look forward with confidence to returning to profitable managed growth, and to delivering ongoing value for all our stakeholders.”
The news comes two weeks after an outbreak of Covid-19 at a Balfour manufacturing facility in Avonmouth.
Balfour was was forced to temporarily close the facility, which has now reopened, after 37 employees tested positive for the virus.
The site, which manufactures nuclear-grade cement segments for Hinkley Point C power plant in Somerset, underwent a "deep clean" following the outbreak, according to Balfour.
The company said the main Hinkley Point C site was not impacted by the outbreak.
Balfour's sites have remained open and operational during the pandemic in line with UK government guidelines.
William Ryder, equity analyst at Hargreaves Lansdown added: “Pandemic-related disruption has pushed Balfour Beatty into loss-making territory, and given the razor-thin margins construction groups tend to operate on this isn’t that surprising.”
He added: “We think governments are likely to react to the prospect of a sustained recession with some degree of infrastructure spending, which bodes well for Balfour Beatty.”
Balfour shares fell 4.1 per cent in early trading.
