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Tue August 16 2022

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Balfour Beatty sets up infrastructure fund

1 Dec 10 Balfour Beatty has set up a new infrastructure funds management business and revealed plans to reorganise its investment portfolio.

In a briefing to investors and analysts yesterday, the company said it was in the early stages of setting up an infrastructure funds management business, run by Rob Gregor, formerly head of European infrastructure at AMP Capital Investors and chaired by Andy Friend, formerly CEO of Laing plc. Balfour Beatty will be an investor in the fund.

It also disclosed that it plans to sell between £200m and £300m of assets over the next five years, using the cash to develop new assets and increase shareholder dividends.

The company said that it expects recent efficiency initiatives and better use of resources to push up operating margins.

“We believe that we have scope to improve the operating margin of the Group to 3.5-4% over the medium-term through a combination of achieving higher margins in the divisions and the continuing greater role of professional and support services in our business mix,” the company said.

The recently acquired Parsons Brinkerhoff business would play a significant role in this strategy, and also in accessing business in emerging markets.

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