Balfour Beatty has seen its pre-tax profit jump to £112m in its first half results, up from £82m a year ago.

The infrastructure firm’s latest trading statement, covering the six months to 28 June, also revealed a slight growth in revenue to £4.67bn, as the group suggested strong cash flow had supported “continuing attractive shareholder returns”.

Balfour Beatty has hiked its dividend to 3.8p per share as a result, up from 3.5p at the same time last year.

While the firm has achieved revenue growth in its global operations, Balfour Beatty’s UK construction business did register a slight drop in revenue to £1.46bn from £1.52bn in H1 last year.

These UK construction operations – which include several significant projects such as HS2 schemes in the north, Old Oak Common station in London and Hinkley Point C nuclear power station in Somerset – have still managed to secure a growth in profits for Balfour Beatty, however, as the group posted a rise in profit margins in this part of the business to 2.3% in H1, up from 2.0% last year.

Balfour Beatty group chief executive, Leo Quinn, said that the group’s earnings-based businesses have “continued their growth trajectory” in H1, to drive an increase in profitability and cash generation.

“The outlook for the group’s chosen growth markets, where we hold unique capabilities in delivering complex infrastructure projects, remains encouraging, including in the UK with the new Government reinforcing commitments to critical national infrastructure,” Quinn said.

“Balfour Beatty's prospects across these markets provide the board with confidence that the group will continue to deliver significant and attractive shareholder returns in the coming years.”

Head of financial analysis at AJ Bell, Danni Hewson, also commented: “One of the first moves by new chancellor Rachel Reeves was to lower the axe on a number of UK infrastructure projects as the Treasury sought to balance its books.

“Shares in engineering giant Balfour Beatty slumped on the news but despite concerns about the future direction of travel, the company has delivered a solid set of half year results with optimism threaded through the update like a stick of rock.”

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