Balfour Beatty Share Discussion Threads

[proj] 10/5/2014 13:01

damanko, that's if divi is sustained here.

[damanko] 10/5/2014 11:36

Ditto. Now have an overall 'bought price' of £1.69, so a decent start yield, certainly compared to leaving money in a 'savings' account. About these misnomers............

If BBY can attract a construction specialist to sort the company out, the next few years may prove interesting.

[cotton886] 09/5/2014 09:43

Me too - a new senior appointment could restore faith and prompt a recovery play. They need to feed the market some news rather than sit in silence.

[hamblyr] 08/5/2014 11:03

I've just got some as a punt...

[haywards26] 06/5/2014 20:33

BBY needs a real shake up. They were the market leading number 1 UK construction company. How often do large acquisitions fail!?.... the new ceo will have to be a big hitter, no more from within promotions. it now needs fresh eyes and fresh ideas. The saving graces are the diversification and ppp assets.

[dumpling2] 06/5/2014 17:09

3 brokers had this share as a BUY only last month. What do they pay these scribblers for? Why pay them at all?

[dumpling2] 06/5/2014 16:53

I warned against this share in December 2012 and again in March 2013. I am surprised they did not come clean earlier. Unless they radically restructure and show responsibility when tendering this company is toast. Meanwhile I would not be brave enough to value this share.

[alfred] 06/5/2014 15:25

CEO rightly jettisoned but I would imagine he's been let down by an equally inept senior management. Doesn't bode well for the future unless there's a clear out of the deadwood.

[fillipe] 06/5/2014 14:42

fillipe
29 Apr'13 - 10:41 - 1761 of 2122 0 0 edit

Remember this one?

fillipe
22 Mar'13 - 00:44 - 1642 of 1760 edit

21-3-13 - Investec - Sell. Tp....190p

just info

f


racg
29 Apr'13 - 10:57 - 1762 of 2122 0 0

What mentioning a broker target, is kudos? Best way to be poorer is to follow broker targets, my friend.

[tday] 06/5/2014 13:03

Hello hvs. Good to see you on this and many other b/boards, with your insightful comments.

[simon gordon] 06/5/2014 11:27

Lombard in the FT - 6/5/14:

Balfour beaten

The recession is over. No one told Balfour Beatty, though. The construction group has warned that this year's profits will be about 25 per cent below forecasts, at £145m-£160m, and has jettisoned chief executive Andrew McNaughton.

Executive chairman Steve Marshall is right to consider breaking up this serial underachiever. His first step has been to open an auction for Parsons Brinckerhoff, a US construction consultant bought for £380m in 2009, courtesy of a £353m rights issue. Mr Marshall hopes to make enough to avoid hefty write-offs against a book value of £334m, but admits promised synergies have not materialised.

The troubleshooter says Balfour retains "a viable axis" as a US and UK construction group. That implies spinning off businesses in support services, government infrastructure and Dubai and Hong Kong construction.

But who would want to hold shares in the rump construction services business? It is here that Balfour has run into trouble, succumbing to the weakness characteristic of many contractors: bidding low to win contracts, then taking a hit when costs escalate. As a result of this flaw, earnings from construction companies are typically lumpy, unpredictable and low margin.

Groups such as Amec, now a powerful oilfield services company, have quit the construction industry to escape this trap. The solution chosen by Balfour, like many others, was to diversify. That has not worked. The shares have fallen 36 per cent over five years. Margins in UK construction have evaporated. The case for builders to maintain stock market listings looks weaker than ever.

[bongo bwana] 06/5/2014 11:07

Perhaps some interest from the US might develop this afternoon!

[lebiche] 06/5/2014 10:41

You wouldn't touch this for at least 3 months.

[lord gnome] 06/5/2014 09:55

This fourth profit warning is just the first of the next three. I reckon that there could be yet more nasty news to come here.

[miata] 06/5/2014 09:25

Too many precipitous drops to sleep at night with a large holding but probably worth a punt around say 220p for a 50% FIB recovery to 270ish, though history shows that takes a while.



Top mark goes to JP Morgan
01-Apr-14 JP Morgan Cazenove Underweight 300.00p 180.00p 230.00p

[compound_dave] 06/5/2014 09:23

We've had 4 already enviro!

Think the outlook for construction should pick up in the next 12 months, as the economy improves.

[envirovision] 06/5/2014 09:20

Hmm, but what other nasties lurk in this conmpany, this kind of rot tends to be endemic and may take a while to fully surface, hence such warnings tend to comje in threes

[compound_dave] 06/5/2014 09:17

What a shambles management have made here. The CEO is a disgrace.

Having said that, this share looks very good value now.

[wipo1] 06/5/2014 09:15

Never trust a broker.

[skyship] 06/5/2014 08:15

Red faces at teenage scribblers Jefferies International!!!

[skinny] 06/5/2014 07:42

Balfour Beatty, the international infrastructure group, announces that Andrew McNaughton has stepped down as Chief Executive of the Group and as an Executive Director of the Board with immediate effect.

Steve Marshall, Balfour Beatty's Non-Executive Chairman, will take over as Executive Chairman until a successor is appointed. He will be devoting a significant amount of time to the Group in this interim period, and will lead the Group's Executive Committee. The Board will commence a process to appoint a successor to Andrew McNaughton shortly.

Steve Marshall said: "Andrew has served the Group for the last 17 years in a wide variety of roles. I would like to thank Andrew personally and on behalf of the Board for his major contribution. We wish him well for the future."

The Group has today also separately announced a trading update, 2014 Q1 IMS and strategic review.

ENDS

[skinny] 06/5/2014 07:41

Summary

· Whilst most parts of the Group are trading in line with management's expectations, we now expect a £30 million shortfall in our UK construction business in 2014.
· Professional Services, Support Services and the Investments division continue to perform well and are in line with management expectations.
· As a result overall Group pre-tax profits for 2014 are expected to be significantly lower than previous expectations, in the range of £145 - £160 million.
· Andrew McNaughton has stepped down as Chief Executive with immediate effect. Steve Marshall, will take over as Executive Chairman until a successor is appointed.
· A strategic review has led the Group to evaluate options for the possible sale of Parsons Brinckerhoff, conditional on providing attractive shareholder value.

[fanel] 02/4/2014 12:30

Humber windfarm, Siemens equipment, BBY installation?