Hobson: Balfour Beatty Turns the Corner

THE WEEK: Balfour Beatty has steered away from being the next Carillion, but will rival Kier manage the same feat, asks Rodney Hobson

Rodney Hobson 16 March, 2018 | 2:57PM
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Balfour Beatty Bounces Back

There’s only one thing more pleasing than seeing a company that looked down and out bouncing back against all expectations, and that’s when you happen to own shares in it. 

I’m always sceptical of turnaround strategies until they prove they are actually working. But one has to admit that a trebling of profits at construction group Balfour Beatty (BBY) on flat revenue is highly encouraging, even if figures were flattered by the judicious sale of a stake in a motorway consortium. The dividend total is up from 2.7p to 3.6p, enough to keep shareholders happy without being rash.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Balfour Beatty PLC257.20 GBX-0.16
Kier Group PLC108.20 GBX-2.70

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.