Balfour Beatty Share Discussion Threads

[martinmc123] 05/12/2024 10:12

4*
Balfour Beatty, the international infrastructure group, issued a solid if not particularly exciting trading update covering the period to 5 December 2024. 2024 revenue is now expected to be c.2% ahead of prior year (FY2023: £9.6 billion) due to growth in Support Services and Gammon. The Order book is expected to grow by over 5% in 2024 (FY2023: £16.5 billion)...from WealthOracle

wealthoracle.co.uk/detailed-result-full/BBY/1055

[wad collector] 05/12/2024 08:26

TU solid, and the share price performance is impressive here , new 16yr highs and more to come by the looks of it. Hold and prosper I think.

[srichardson8] 13/9/2024 18:49

Agreed. Nothing more worrying than a share getting multiple posts on this site, especially if a small cap. And BB seem to be delivering on their promise to sharpen up, grab more profitable business in infrastructure (see today's news) and get those margins up a bit. With revenues of more than £9bn a small tweak in margins has a disproportionate impact on reported profits and there should be little of the dilution we see in US techs with their massive stock giveaways .
There is a place for rather boring, low risk (usually!) stocks in my portfolio - I halved my quite big (relative) stake in Serco to take a position here. As noted above the stock is begining to nudge towrds it all-time highs.
Low energy (power cables, see the news today), transport and defence are BBY's hunting ground. Huge projects in Scotland and East Anglia, roads and rail, defence and increasingly construction in the USA. There are risks, of course. The Gammon j-v (with Jardine Matheson)is all HK, largely construction, infra and airports. The Lower Thames Crossing decision is expected in early October and we all know the government is under financial pressure. But as the company stated in the interim report
'the Board continues to expect growth in underlying Group earnings in 2024, with growth accelerating in 2025.'

[wad collector] 30/8/2024 13:05

Impressively quiet BB considering strong last 4 months; a 16 yr high looks imminent.

[woodyjmw] 10/5/2024 09:05

Deutsche Bank starts Balfour Beatty with 'buy' - price target 500 pence

[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 07:36

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

[buffinman] 31/8/2023 20:01

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

[lorse] 31/8/2023 18:35

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

[buffinman] 23/8/2023 09:11

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 13:19

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 20:05

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

[volsung] 16/8/2023 11:34

Not looking good
I’m out

[volsung] 28/6/2023 08:08

At least the EPIC for this is not BBC

[volsung] 28/6/2023 07:41

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 13:57

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

[kalai1] 12/5/2023 11:04

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 09:52

They surely must be looking at costain

[imastu pidgitaswell] 26/8/2022 10:28

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 09:44

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

[imastu pidgitaswell] 18/8/2022 17:07

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 19:49

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