Balfour Beatty Share Discussion Threads

[nw99] 30/5/2014 08:16

Well oversold I agree

[compound_dave] 29/5/2014 07:37

We should shift northwards again today. Way oversold for me with a cracking dividend.

[nw99] 28/5/2014 20:11

Nice move again today

[nw99] 28/5/2014 07:07

BALFOUR BEATTY APPOINTED TO DELIVER UP TO £180M OF INFRASTRUCTURE WORKSAT HEATHROW AIRPORT

[skinny] 28/5/2014 07:04

BALFOUR BEATTY APPOINTED TO DELIVER UP TO £180M OF INFRASTRUCTURE WORKS
AT HEATHROW AIRPORT

Balfour Beatty, the international infrastructure group, has been appointed to deliver up to £180 million of infrastructure works for Heathrow Airport Limited.

Over the next three years the company will work together with Heathrow to maintain and upgrade Terminals 1, 2 and 4, through the 'Delivery Integrator Framework Lot 1'. This is the first of four new-style framework contracts to be awarded by Heathrow, each for a different section of the airport, as part of a total investment package of £1.5 billion.

These new frameworks, which appoint a single contractor to deliver a programme of projects, are intended to enable Heathrow to realise year-on-year savings on its capital investment programme.

Balfour Beatty will be acting as programme manager and contractor at various stages throughout the lifecycle of the framework, delivering individual projects worth between £500,000 and £70 million. Projects will range from structural improvements to multiple asset replacements such as escalators and passenger conveyors, passenger and goods lifts, air conditioning systems, retail areas, CCTV, access and security systems. At the end of 2016 there is an option to extend the framework for a further two years, which will be worth up to an additional £70 million.

Balfour Beatty will bring its substantial range of in-house expertise to deliver the framework including design, engineering, construction, mechanical and electrical capabilities, and Building Information Modelling (BIM) which will allow full 4D design specification for Heathrow.

Balfour Beatty has a fifteen-year association with Heathrow having worked on two previous frameworks, and has delivered significant infrastructure projects from the award-winning Terminal 5 facility to multiple asset improvement projects across the airport. The company is currently delivering the new £590 million Terminal 2B facility as part of the Terminal 2 complex, due to open this summer.

Steve Marshall, Balfour Beatty Executive Chairman, said: "I am delighted Balfour Beatty has been appointed to Heathrow's new style of framework contracts. We have worked in partnership with Heathrow for fifteen years and we will continue to bring our leading capabilities in areas such as Building Information Modelling and safety to our work at Terminals 1, 2 and 4; and play our part in helping Heathrow maintain its position as a leading travel hub."

ENDS

[nw99] 27/5/2014 16:38

I got that from Shares mag ! anyway the result is I bought the stock at 223 !

[tday] 27/5/2014 16:10

nw99. Where did you get 21/5? The shares went xdiv on 23 April, as pointed out recently by grahamburn.

[nw99] 27/5/2014 15:12

Sorry went ex 21/5 apologies

[nw99] 27/5/2014 15:10

Oversold rebound

[nw99] 27/5/2014 15:09

Buying for the dividend

[grahamg8] 26/5/2014 10:33

Rising debt and ongoing pension liabilities suggest disposals to come. If these come in at a reasonable price the shares might rise, otherwise we can but hold for the dividend yield. Always keeping fingers crossed that future dividends don't get cut if there are more problems identified.

[kaffee] 23/5/2014 20:36

...or equally could be on the wrong thread with that as well. ;-)

[grahamburn] 23/5/2014 14:39

nw99.

Where do you get "dividend next week" from?

The next dividend is scheduled for 4 July with an ex-dividend date of 23 April.

Are you on the wrong thread? Though your comment about being "oversold" may have some validity here as well.

[k3ndo] 23/5/2014 13:52

Good to see contracts coming in.

[nw99] 22/5/2014 12:39

Oversold and dividend next week

[poley] 22/5/2014 07:40

Is it just me or does this company look overvalued right now ?

186 mil PTP forecast for 2014, 222 mil for 2015.
Market cap nearly 2 billion.
Operating margins under 1 for last two years. Sales falling for last 3 years.
Negative working capital every year. Dividends 96 million.
Purchases of:- intangible assets -other (38) (25)


Regarding its pension deficit payments 'from the last annual report ;

''and £65m per annum from April 2018 to May 2020''


''Following the previous formal triennial funding valuation of the BBPF carried out as at 31 March 2010, the Group agreed to make ongoing deficit payments to the BBPF of £48m per annum from April 2010, increasing each year by CPI (capped at 5%) plus 50% of any increase in the Company's dividend in excess of capped CPI. Following the merger of the Parsons Brinckerhoff Scheme with the BBPF the Group agreed to make additional deficit payments of £11m per annum, with the first payment made in October 2012. During 2012 the Group also agreed to make additional conditional deficit contributions of £1m per month, payable quarterly in arrears, if the BBPF funding levels
in any given month were below certain funding targets set out in the BBPF journey plan, with the first payment made in January 2013.
A formal triennial funding valuation of the BBPF was carried out as at 31 March 2013. As a result the Group agreed with effect from April 2013 to make revised ongoing deficit payments of £50m per annum, increasing to: £55m per annum from April 2016; £60m per annum from April 2017; and £65m per annum from April 2018 to May 2020, increasing each year by CPI (minimum 0% and capped at 5%) plus 200% of any increase in the Company's dividend in excess of capped CPI. If the Company makes any one-off return of value to shareholders such as a special dividend, share buy-back, capital payment or similar before the next actuarial valuation is agreed,there will be an additional increase in the deficit payment for the following year only, calculated as the regular deficit payment for that year multiplied by 75%, multiplied by the value of the one-off return of value, divided by the total of the regular dividends for the year in which the one-off return was made. The Group has the ability to use surplus funds in the defined benefit section of the BBPF to pay its contributions towards future service benefits in the defined benefit and defined contribution sections of the scheme.
In 2012 a pension increase exchange (PIE) offer to certain current pensioners, widows and widowers of the BBPF, to forego their entitlement to future non-statutory inflation increases in return for a higher pension than their current entitlement, resulted in a £2m
reduction to the pension liability and a consequential net past service cost credit of £2m''


''At 31 December 2013, the
retirement benefit liability recognised on
the Group's balance sheet was £434m
(2012: £333m restated). The effects
of changes in the actuarial assumptions
underlying the benefit obligation, discount
rates and the differences between
expected and actual returns on
the schemes' assets are classified as
actuarial gains and losses. During 2013
the Group recognised net actuarial losses
of £114m in equity (2012: £115m losses
restated), including its share of the
actuarial gains and losses arising in joint
ventures and associates''

[n3tleylucas] 21/5/2014 19:37

Don't get me wrong mate, I'm not defending a lamentable performance in recent years, just answering a rather narrow point. Look at AMEC, how they had a wee think and decided a new direction was due... maybe this lot should do the same?

[n3tleylucas] 21/5/2014 19:21

Bang on mate, I'm drinking beer and listening te tunes...

Underlying earnings per share for continuing operations were 20.0 pence (2012: 31.7 pence), which along with an underlying loss per share from discontinued operations of 2.2 pence (2012: earnings per share of 2.1 pence) gave an underlying earnings per share for total operations of 17.8 pence (2012: 33.8 pence).

This is good...

[death by donut] 21/5/2014 19:06

Don't want to bang on but I found 17.8p under continueous op's for 2012 ?

On that note I found that measure to be 2.5p for 2013 in the accounts and on sharescope. Is this the measure most use rather than 'Normalised'?

DbD

[n3tleylucas] 21/5/2014 18:40

Or put it another way... if this was really making minus 3p a share it would be bust. lol

[n3tleylucas] 21/5/2014 18:37

No, 17.8p was the actual earnings that covered the 14.1p, according to the accounts.

[death by donut] 21/5/2014 18:35

Just to be clear 17.8p eps , isnt that the forecast for Dec'14?

I've got Dec'13 as -3p ( rounded ) for eps coupled with the 14.1p div gives div cover of -0.22p.

DbD

[n3tleylucas] 21/5/2014 18:02

Death by Donut,

14.1p divs were covered by 17.8p of earnings. So no. But of course you could argue the move in recent years from healthy net cash to unhealthy net debt has effectively been paying the dividends lol... so yes and no.

[death by donut] 21/5/2014 15:41

So to further my financial education , would I be correct in assuming they borrowed money to pay the divvy?

DbD