Balfour Beatty Share Discussion Threads

[scotches] 19/8/2021 07:00

hTTps://www.hl.co.uk/shares/share-research/202108/balfour-beatty-steady-but-not-soaring Hargreaves view. "However, even in the good times margins in the construction sector are pitifully thin. An operating profit margin of 3% is pretty impressive in the UK, while in the US as low as 2% is good going. Such low margins leave little room for error and unfortunately Balfour, like the wider construction business, is accident prone." "Still, we've been impressed by Balfour's ability to win, and keep hold of, business contracts during the disruption. A growing order book is not something all construction companies can boast. Quinn's more disciplined approach to managing the business also means the balance sheet is in reasonably good shape."

[bigbertie1] 18/8/2021 20:29

deckle, there was another negative. remedial work is required on concrete slabs cladding a high-rise building in London. BBY has a liability but is waiting for engineers reports to estimate the cost of work. It could vary a lot but they say maximum £50m. Expect a hit in the yearend numbers! So yet again a construction company stumbles on fixed price contracts and high-rise cladding. Disppointing.

[dekle] 18/8/2021 08:47

Beyond me, the only negative I could find was the private property in London projects loosing money. However I was disappointed with the dividend.

[skyship] 18/8/2021 08:33

Down 7% and zero comments! No-one holding perhaps. I have it on my Monitor - saw the figures & statement - didn't seem so bad...

[dekle] 21/6/2021 10:23

According to my calculations so far £90m spent on buy backing shares leaving £60m to go I estimate.

[thaiger] 27/4/2021 17:24

At an all time high today!

[dickbush] 21/4/2021 12:58

Er...sorry about that. I forgot they increased the buyback to £150mil. Oh, well, I'm out at 316p for a very nice percentage gain. Best wishes to all holders with better memories than mine.

[dickbush] 20/4/2021 09:05

Almost finished the £50 mil buy-back. They could well announce another-they certainly have the money-but I've had a great run. I'm out.

[dickbush] 16/3/2021 09:13

Roundnumberitis? Given a half-decent market background, it should make it through.

[egan] 15/3/2021 16:46

4th attempt to break resistance at 300

[dickbush] 10/3/2021 10:29

Website says July 5th.

[dekle] 10/3/2021 10:04

Could you see the divi dates?

[dickbush] 10/3/2021 09:56

Buy back raised to £150 mil. Forecast operating profit returning to 2019 level, and a 15% increase in the order book. Suggests the 2021 p/e is circa 11 times @ 280p. with a dividend of 40% of after tax earnings (ex gains from disposals of investment assets). suggesting a circa 3.5% yield.. What's not to like?

[dekle] 09/3/2021 13:34

Results tomorrow, perhaps some leakage causing the price to drop?

[dickbush] 05/3/2021 13:46

https://www.constructionnews.co.uk/contractors/balfour-beatty/balfour-and-bam-among-winners-on-650m-scotland-healthcare-framework-05-03-2021/

[dekle] 04/3/2021 16:27

In a sea of red BBY showing blue

[dekle] 24/2/2021 09:24

According to my calculations they have bought back £18.5m's worth of shares so far and the original target spend was £50m. Is that correct? If so I feel the next buys are more likely to have an impact on the share price, hopefully??

[dekle] 11/2/2021 14:28

Confirmation of the extension of HS2 to Crewe by Parliament today must mean potential more construction work for BBY

[dekle] 10/2/2021 15:00

What would the price be if it wasn't for the buyback because we seem to be back to the level when the bullish trading statement was made in early December??

[dickbush] 04/2/2021 16:34

Very rare to see a buy back these day that enhances the NAV. It's supposed to increase the share price because a. It decreases the outstanding/supply of its shares b. It increases eps because cash is earning very little. These days, nothing. Just be glad we don't own shares in a company that is borrowing to boost its share price and make the company executives rich while destabilising its viability e.g many companies in the US just before the outbreak of covid-19.

[dekle] 02/2/2021 09:06

Looks like the buy back has had a negative effect on the share price. Never in favour of a buy back unless it enhances the net asset value. I doubt if it does that in this case unless I'm wrong. On the other hand if they managed to sell the treasury shares for a profit without depressing the share price I could see a benefit in a share buy back. Please offer an opinion, thank you, Dekle

[dickbush] 09/12/2020 07:36

Excellent update. Talking about 2021 to be broadly in line with 2019, disposal of investments and a return of capital (£50mil to be spent on buying back shares after Jan 1st). £500mil in net cash. The only negative is the US situation but it looks like they are putting their hands up and, in any case, it will be a one-off cost, and no doubt treated as an exceptional item in 2021's P&L.

[essentialinvestor] 01/11/2020 19:00

Construction sites to remain open (at least for now) however it may be wise to expect some margin impact?, potential increases in staff sickness levels etc, needing to self-isolate if a family member falls ill.