(RTTNews) – Shares of Balfour Beatty plc gained around 4% in morning trading in London after the Infrastructure Group reported significantly higher profit in its 2021 financial year, despite weak revenues. Full year results exceeded expectations.
In addition, the company said its board recommended an annual dividend of 9.0 pence per share, up from 1.5 pence per share last year. The company also announced the next phase of the multi-year £150 million share buyback program for 2022.
Looking to fiscal 2022, the company said its board’s expectation is that its earnings-based businesses, such as construction services and support services, will generate further earnings growth in 2022.
At Infrastructure Investments, Balfour Beatty will continue to divest assets and make new investments within its capital allocation framework.
For 2023 and beyond, the company forecasts profitable managed growth and sustainable cash generation.
For financial year 2021, pre-tax profit climbed to £87m from £48m last year.
Basic earnings per share were 21.3 pence, down from 4.4 pence a year ago.
Underlying profit before tax was £187 million, compared to £36 million last year. Underlying earnings per share were 29.7 pence, down from 3.7 pence a year ago.
The company recorded a continued recovery in underlying operating profit to 197 million pounds, up from 51 million pounds a year earlier. Underlying PFO for profit-based businesses was £181m, ahead of expectations, and up from £75m last year. It is also 5% above pre-pandemic levels in 2019.
Revenue fell to £8.26 billion from £8.59 billion a year earlier. Underlying revenue also fell from a year ago to £8.28 billion.
The backlog was £16.1 billion, compared to £16.4 billion a year ago.
In London, Balfour Beatty shares were trading at 241.60 pence, up 4.23%.
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