Profits at UK engineering firm Balfour Beatty up 69pc
PROFITS at Balfour Beatty – the UK company that through a joint venture has a €500m contract to install and maintain gas infrastructure across Ireland – saw its underlying profits jump 69pc to £66m (€74m) in the first half of the year.
However, its underlying revenue in the period declined from £4.2bn (€4.7bn) in the first six months of 2017 to £3.8bn (€4.2m) in the first half of 2018.
The group said that while maintaining “disciplined bidding practices”, it grew its order book to £12.6bn (€14.1bn) at the end of the first half of the year.
That was primarily due to wins by its US construction business, including its 30pc share of the $2bn (€2.2bn) Los Angeles Airport automated people mover project.
“All our businesses are now either achieving industry standard margins or on track to do so in the second half,” said CEO Leo Quinn.
“Given the strength of our balance sheet and the board’s confidence that the group’s full-year earnings will meet expectations, we are raising the interim dividend by 33pc and plan to repay the outstanding convertible bonds this year,” he added.
Balfour Beatty plans to repay £214m (€240m) of outstanding convertible notes when they fall due in December.
Balfour Beatty has a joint venture in Ireland with CLG, which undertakes work for Gas Networks Ireland. NEW Leinster captain Johnny Sexton was compared to soccer legend Lionel Messi this week
And the star Irish No 10 displayed some nifty footwork off the pitch himself last year to increase profits at his company to almost €1.6m.
New accounts lodged by Sexton’s Jas Management & Promotions Ltd show that profits at the company increased by €28,719 from €1.567m to €1.596m in the 12 months to the end of September last.
The profits last year are quite modest compared to the profits of €431,788 earned by Sexton’s firm in 2017.
However, this is partly explained by the company directors, Sexton and his wife, Laura enjoying almost a sevenfold increase in pay from the firm going from €22,350 in 2016 to €150,864 last year. During the same period the company’s cash pile increased by just under €100,000 going from €1.1469m to €1.2463m. The value of the company’s investments also increased during the year going from €351,729 to €376,773.
Sexton, who turned 33 last month, was a relative latecomer to the international scene and has been making up for lost time in the commercial world.
The almost €1.6m in accumulated profits at Sexton’s firm compares to accumulated profits of €476,099 at the firm at the end of 2014.
Sexton has enjoyed a stellar 2017/18 season where he led Ireland to a Grand Slam and Leinster to a European Cup.
Currently, Sexton’s off-field commercial deals are being guided by Conor Ridge’s Horizon Sports where Sexton is the firm’s most high-profile client — other clients include Munster’s Peter O’Mahony and golfer, Shane Lowry.
Horizon Sports had a very public falling out with superstar golfer Rory McIlroy where an out-of-court agreement in February 2015 in Dublin resulted in Horizon Sports receiving a reported €21.8m ($25m) from the golfer.
The Dubliner is the most successful current Irish rugby star from a playing and commercial point of view.
But he has some way to go to match the commercial success of his former retired Leinster and Ireland team-mate Brian O’Driscoll whose main firm enjoyed profits last year of €880,913 to result in accumulated profits of €5.94m.
Sexton is one of a number of rugby players with their own management companies to handle earnings from ventures such as sponsorships and image rights.