Construction is notorious for its wafer-thin margins and Balfour Beatty’s (BBY) ‘Build to Last’ programme has been targeting the so-called ‘industry standard’ across its operations. Last year saw the underlying operating profit margin in UK construction expand by 0.6 percentage points to 2.1 per cent, within the desired 2-3 per cent range. This could improve further in 2020 as the group bids more selectively on contracts and the problematic Aberdeen Western Peripheral Route (AWPR) route has now been completed.
IC TIP:
Hold
at
243p