Group highlights
The 2019 results clearly demonstrate that the benefits of the Build to Last transformation programme are accelerating.
Underlying revenue1
£8.4bn
Number of employees
26,000
Underlying profit before tax
£200m
Directors’ valuation Investments portfolio
£1.07bn
Order book1
United Kingdom
£6.2bn
United States
£6.5bn
Hong Kong
£1.6bn
1 Including share of joint ventures and associates, before non-underlying items.
More information: Operational review
The best of Balfour Beatty
There are so many amazing things happening across Balfour Beatty. In our 110th birthday year, we asked our employees to help tell our story – by sharing their best photos of what we do and how we do it. Take a look at some of the entries from across our business showcasing our size and scale, our capabilities, our expert people, our incredible projects and our market-leading innovations.
Leo Quinn
Group Chief Executive
Five years into our Build to Last transformation programme, Balfour Beatty continues to drive a culture of transparency, risk management and relentless improvement.
Our strategy: Build to Last
Launched in 2015, Build to Last is Balfour Beatty’s transformation programme to drive continuous improvement and build the Company’s future.
The Build to Last transformation is measured against four goals of Lean, Expert, Trusted and Safe, using cash flow and profit from operations, employee engagement, customer satisfaction and Zero Harm, respectively.
Launched in 2015, Build to Last is Balfour Beatty’s transformation programme to drive continuous improvement and build the Company’s future.
The Build to Last transformation is measured against four goals of Lean, Expert, Trusted and Safe, using cash flow and profit from operations, employee engagement, customer satisfaction and Zero Harm, respectively.
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Lean
Deliver value to our customers by improving operational efficiency and eliminating waste right through the supply chain.
Our KPI
NET CASH
excluding non-recourse borrowings
£512m2018: £337mUnderlying profit from operations
£221m2018: £205m -
EXPERT
Ensure we have the best engineering, construction, design and project management capabilities.
Our KPI
Employee engagement index
66%2018: 65% -
TRUSTED
Be the construction partner of choice for our customers and supply chain by delivering on our promises.
Our KPI
Customer satisfaction average
94%2018: 97% -
SAFE
We must ensure the health and safety of everyone who comes into contact with our activities.
Our KPI
Lost time injury rate
excluding international joint ventures
0.142018: 0.15
Sustaining Build to Last
The following three sections highlight Balfour Beatty’s unique approach to developing and leveraging its capabilities. The Group is focused on adding value for all its stakeholders, driving continuous improvement and diligent processes as well as encouraging and supporting employees to develop the culture that will sustain a market-leading position.
We discuss macro trends and opportunities in our chosen markets, the way we operate and how we create value for all our stakeholders as well as the cutting edge solutions we are leveraging to meet our customers’ challenges.
- Market review
- Business model
- Stakeholder value
- Innovation
Our three operating divisions outline their key achievements throughout 2019 and how they are delivering our Build to Last strategy. We also look at our Investments portfolio in more detail.
- Construction Services
- Support Services
- Infrastructure Investments
- Directors’ valuation of the Investments portfolio
Our disciplined contracting is further strengthened by our approach to building a positive culture – our people are encouraged and supported to always do the right thing.
- Health, safety and wellbeing
- Our people
- Business integrity
- Building a sustainable business
- Risk management
Focused on growing markets
Balfour Beatty operates in a number of carefully selected markets, based on level of opportunity and ability to outperform its competitors.
United Kingdom
United States
Hong Kong
Business model
Multi-disciplinary collaboration is core to Balfour Beatty’s identity; our Construction Services, Support Services and Infrastructure Investments teams work closely together to ensure high-quality outcomes for our stakeholders.
Click on + for more information on our divisions and how we work collaboratively across the Group.
Sharing the value we create
In striving to achieve our purpose of creating infrastructure, supporting communities and enabling growth, we touch the lives of many people. We strive to unlock long‑term value for each of our stakeholders.
Customers
Collaborative and long-term mutually beneficial relationships with our customers are the foundation of our success.
Employees
A talented and engaged workforce committed to upholding our values, enables us to deliver our Build to Last goals, ensuring we win the best and most exciting projects.
Supply chain and strategic partners
Our thousands of supply chain partners, large and small, are an invaluable resource fundamental to the successful delivery of all of our projects.
We also work with trusted partners in a number of long-term joint ventures which are critical to our success.
Communities
Our activities can have a lasting impact on the communities in which we operate – we strive to leave a lasting legacy.
Governments
Public policy, laws and regulations define the business environment in which Balfour Beatty operates. Governments – and their associated bodies – are also Balfour Beatty’s largest customer.
Shareholders
Shareholders are the owners of Balfour Beatty. The Board places great importance on having positive relationships with all shareholders and seeks to ensure there is an appropriate level of dialogue with them.
Sustainability highlights
Driving economic, environmental and social outcomes.
More information: Building a sustainable business Sustainability
Philip Harrison
Chief Financial Officer
The Group continues to have one of the strongest balance sheets in the sector with customers increasingly recognising this competitive advantage.
Measuring our financial performance
The following are financial performance measures which are considered most relevant to the Group and used to manage the Group’s performance.
Continuing underlying revenue £m1
Continuing underlying profit from operations (PFO) £m
Continuing underlying earnings per share (BASIC) Pence
Order book £bn1
Statutory revenue £m
Statutory profit for the year £m
Statutory earnings per share (BASIC) Pence
1 Including share of joint ventures and associates, before non-underlying items.
Philip Aiken AM
Group Chair
I believe that the Board has a critical role in shaping a positive culture that supports our strategic objectives and promotes strong performance that is sustainable over the long term.
Governance highlights
The Board strives to embed a positive attitude to good governance into the Company’s culture.
Maintaining a strong Board
The business is led by the Board of Directors, which has strong commercial experience relevant to the sector in which the Group operates, and which sets and oversees the strategic direction of the Group.
The Company’s approach to remuneration seeks to deliver a robust link between strategy, reward and performance and to ensure it is able to attract, retain and motivate key executives to deliver strong sustainable business performance.
