Balfour Beatty plc
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Balfour Beatty plc Financial Snapshot
Operating Performance
Fast Facts
130 Wilton Road, London, SW1V The company reported revenues of US$14,209.23
Headquarters Address
1LQ,United Kingdom million during 2010, with a CAGR of 14.35% during
2006–2010. Its revenue grew at an annual rate of
Telephone + 44 20 72166800
1.56% over the previous fiscal year. In 2010, the
company recorded an operating margin of 2.38%, as
Fax + 44 20 72166950 against 3.15% in 2009.
Website www.balfourbeatty.com
Revenue and Margins
Ticker Symbol, Stock Exchange BBY, London Stock Exchange (LON)
Number of Employees 50,524
Fiscal Year End December
Revenue (in US$ million) 14,209.23
Revenue (in GBP million) 9,236.00
SWOT Analysis Return on Equity
Strengths Weaknesses The company recorded a return on equity (ROE) of
13.58% for 2010, as compared to its peers, Carillion
Diversified markets Declining operational performance plc (Ticker: CLLN), Morgan Sindall plc (Ticker:
MGNS) and 3i Group plc (Ticker: III), which recorded
ROEs of 17.20%, 13.47% and 5.02% respectively.
Diversified operations Limited focus on emerging markets The company reported an operating margin of 2.38%
in 2010.
Increasing order backlogs
Return on Equity
Increasing revenue
Opportunities Threats
High speed rail network in the US Economic instability of the EU nations
Infrastructure investment in the Middle
Shortage of skilled labor
East
Trans-European Network transport
Volatile input prices
(TEN-T)
Liquidity Position
The company reported a current ratio of 0.83 in 2010,
as compared to its peers, Carillion plc, Morgan Sindall
plc and 3i Group plc, which recorded current ratios of
0.84, 0.90 and 5.37 respectively. As of December
2010, the company recorded cash and short-term
investments of worth US$898.46 million, against
US$16.92 million current debt. The company reported
a debt to equity ratio of 0.37 in 2010 as compared to
its peers, Carillion plc, Morgan Sindall plc and 3i
Group plc, which recorded debt to equity ratios of
0.32, 0.03 and 0.82 respectively.
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Balfour Beatty plc - SWOT Profile Page 1
Balfour Beatty plc
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
1.4 Key Financial Performance Indicators ...................................................................................................................7
1.4.1 Revenue and Operating Profit ...........................................................................................................................7
1.4.2 Asset, Liabilities and Capex ...............................................................................................................................8
1.4.3 Solvency ............................................................................................................................................................9
1.4.4 Valuation ..........................................................................................................................................................10
1.5 Competitive Benchmarking ..................................................................................................................................11
1.5.1 Market Capitalization .......................................................................................................................................11
1.5.2 Efficiency ..........................................................................................................................................................12
1.5.3 Capital Expenditure ..........................................................................................................................................13
1.5.4 Valuation ..........................................................................................................................................................14
1.5.5 Turnover – Inventory and Asset .......................................................................................................................15
1.5.6 Liquidity ............................................................................................................................................................16
2 Mergers & Acquisitions and Partnerships ........................................................................................... 17
2.1 M&A and Partnerships Strategy ...........................................................................................................................17
3 Recent Developments ........................................................................................................................... 24
4 SWOT Analysis ...................................................................................................................................... 26
4.1 SWOT Analysis - Overview ..................................................................................................................................26
4.2 Strengths ..............................................................................................................................................................26
4.3 Weaknesses .......................................