Balfour Beatty Share Discussion Threads

[stutes] 16/2/2024 16:38

How will the extended liability periods included in the Defects liability Act 30yrs or 15 yrs affect construction firms' profitability? I think it might be construction sector's PPI - unknown bottom line?

[dekle] 01/9/2023 08:36

No I didn't locate the article but I have halved my holding

[buffinman] 31/8/2023 21:01

Lorse, yes it was favourable, as I said above.

[lorse] 31/8/2023 19:35

Dekle - were you able to locate the BBY article 10 days ago, and was it favourable?

[buffinman] 23/8/2023 10:11

That was Alistair Osborne's Business Commentary on the 17th, dekle.

It's recommended in today's Tempus column too

hxxps://www.thetimes.co.uk/article/tempus-admiral-sailing-into-profitable-waters-j8rm2wqm7

[dekle] 19/8/2023 14:19

I’m reading today’s Times and cannot find the article Skinny. Could you confirm the day it appeared please?

[wad collector] 16/8/2023 21:05

Might be a good exit , we PIs are bad at cutting losses.

[volsung] 16/8/2023 12:34

Not looking good
I’m out

[volsung] 28/6/2023 09:08

At least the EPIC for this is not BBC

[volsung] 28/6/2023 08:41

I used to know a boy called Beattie which sounds like Beatty but is not the same name.
If you didn’t see it written then you wouldn’t know

[volsung] 26/6/2023 14:57

These are due a wee rise.
Very oversold
Doubled my holding just now

[kalai1] 12/5/2023 12:04

Balfour Beatty plc issued an AGM trading update this morning. Overall trading has been in line with expectations and the Board continues to expect the Group's 2023 profit from operations from its earnings-based businesses to be broadly in line with 2022. The Group's order book remains healthy and was £17.0 billion at end March 2023. Average net cash was £740 million during Q1 2023 compared to a FY 2022 average of £804 million driven by an expected working capital outflow of around £100 million and share buybacks. The SBB program still has another £75m to complete by end 2023. Valuation is reasonable with forward PE ratio at 11.7x mid range for the Construction & Engineering sector, PS ratio at 0.29x is top third. The Group's balance sheet is strong with negtive net debt, the share price also has strong momentum. BUY...

...from WealthOracle

[essentialinvestor] 12/12/2022 13:22

Share count reduction continues to be the focus for capital allocation and long may that last.
I've sold a portion as conditions seem perfect for BBY atm, sentiment is very strong and that may not last.

[imastu pidgitaswell] 02/12/2022 08:09

Revisiting that 5+ year high again after a couple of months of consolidation. Still on single figure earnings multiple.

With the more settled macro environment (government stability) in place compared with then, seems set fair; they could always consider the benefits of acquisitions to utilise (a little of) their cash pile...

£300m gross, less than £200m net - you know it makes sense.

[gregpeck7] 09/9/2022 10:52

They surely must be looking at costain

[imastu pidgitaswell] 26/8/2022 11:28

They could. BBY has over £800m in cash, and with a Costain market cap of just over £100m (before any bid premium) it would barely dent it - and they would be getting £100m cash in return, the net cash on the Costain balance sheet.

But I'd rather they took over Costain in around 6-8 months, after Costain shares have risen through their own efforts to around 80p. Then 120-140 for the bid, and I'll accept...

Say £300m to BBY 6 months from now, net £180m (after they take control of the Costain cash, which is increasing by around £40m a year as the cash is generated so Costain's £100m will be £120m or so at that point). For a business generating earnings of around £40m cash a year - before the duplicate cost stripping (and there is a lot of that) they would undertake.

Stupid cheap - my fee for proposing the transaction would just be a couple of million...

😜

[gregpeck7] 26/8/2022 10:44

Could they take over costain now ? It's looking crazily cheap and a business that's starting to recover.

[imastu pidgitaswell] 18/8/2022 18:07

Very interesting chart breakout - might be a little overbought short term, but a five year high, breaching previous resistance today on large volumes:


free stock charts from uk.advfn.com

[wad collector] 17/8/2022 20:49

Wow something blue in the portfolio today ; stands almost alone!
Hold and prosper.

[km18] 17/8/2022 14:02

Balfour Beatty posted Interims for the 6 months ended July 1st 2022 this morning. The Group delivered more strong financial performance and also upgraded expectations for FY22. Revenues were roughly flat at £4,147m but elsewhere BBY reported a 42% increase in underlying profit from operations (PFO) at £85 million, a 68% increase in underlying basic EPS at 12.9 pence per share and a 10% increase in the order book at £17.7 billion. The balance sheet is also strengthening with half year average net cash up to £811 million. Share price liked the release, +9% so far today. Valuation isn’t particularly helpful although messages are a little mixed. But solid profit growth and decent quality are big pluses. Certainly worth monitoring, share price looks set to test decade-long highs in the next few sessions. The bumper order book augurs well for performance in the next few years...

...from WealthOracleAM

[essentialinvestor] 17/8/2022 13:11

Yes !, I listened to the entire conference call and hold BBY.

I've made a buy case here several times so won't repeat it again,
the results say it all.

[imastu pidgitaswell] 17/8/2022 13:03

Nobody interested?

Not too many businesses posting year on year results improvements like that.

Although an interesting working capital move the wrong way, some £180m movement against last year, buried deep in the cashflow section of the announcement - presumably timing, given profitability and operating cash generation.

Notwithstanding that, £800m net average non-recourse cash, 68% EPS increase, dividend increase, etc etc. Years of future income on the order book, government everywhere committed to infrastructure spend. Share buybacks galore.

Underlying earnings for the full year - wot, 26-30p? So valued around 10-12 times earnings. Maybe finally some value being recognised with today's price increases.

If only there was some other business in the sector valued at a lower earnings multiple, maybe at its net cash value and no more, but with a similar financial profile...😜

[woodyjmw] 23/7/2022 11:14

Hmm, breakout about to occur,rising wedge/flag? 5th or 6th attempt to break 270, lets see what happens. Either recessionary fears are over done and the US increases infrastructure spending, or we do head into a recession and infrastructure spending collapses?

[woodyjmw] 16/4/2022 12:29

I think it’s USA arm has significant potential and not properly valued yet. As with other European wars, the USA could be an economic winner, especially replacing Russian energy, the US is already a net exporter, a completely different position from the 1970s oil shock. Looks like EU/Germany Germany will have to learn the lesson this time, but USA should benefit.