Anybody trading in these shares? I just bought some @ 204.72

Well, I wish they would hurry up!

8-(

Well the prefs have served me well - up 15% since I bought in the spike down last October plus I've had a 4.84p dividend to boot!

Strange. I checked out my holdings off and on since 2010 to when I sold out at small overall profit.

Mistake is I bought some SBs a few days ago. Damn, but C'est la vie!

But builders and construction are being hurt a little.

As I say, I was fortunate to buy the prefs @101.75p on 14th October.

I wish I had thought a little longer about GF's forecast for the market and to myself when I closed out with other Sbs last Thursday.

Anyway, it isn't the only mistakes I have made, but some irritate more than others.

'Ain't that the truth'!

I took a SB on ESUR this morning @207.7 - about the only thing of mine not being thrown to the lions today!

Jefferies International lifts Balfour Beatty to 'buy' from 'underperform', target raised from 115p to 270p.

"With new management installed and the turnaround under way, we look to 2016 and 2017 profits to drive our valuation. Applying recovery multiples to our 2016 and 2017 estimates implies a price target of 270p, hence we upgrade our rating to Buy. Though construction risks remain for 2015, we take comfort in the group’s £1.3bn PPP portfolio and the incoming management’s LTIP.
A three-year turnaround. With the KPMG review now complete and a new management team on board, we believe Balfour Beatty is well set to both fix the internal problems that have plagued the business over the past 18 months and ride the wave of construction market recovery in the UK and US. Though construction risks remain in 2015, we believe investors should see Balfour as 2-3 year turnaround story and look to 2016 and 2017 profitability. We shift our valuation out to these years, increase our price target to 270p and upgrade our rating to Buy.
Getting back to basics. The KPMG review revealed significant problems in Balfour’s bid process and project management; reviewing these processes is expected to take centre stage in the group’s turnaround. We believe Balfour should refocus its attention on the infrastructure projects on which its heritage was built. In our view, larger, more complex projects have fewer bidders, higher margins, are lower risk and help to attract and retain top talent. Moving from the vicious circle of the last 18 months to a virtuous circle will be key to the turnaround.
PPP portfolio and LTIP give us comfort. We recognise the fact that Balfour is not yet out of the woods in terms of profit warnings, and there is still a chance that 2015 may contain a nasty surprise. However, the scale and strength of the group’s PPP portfolio gives us some comfort, and leaves the remaining businesses trading on 5.1x 2015 EV/EBITDA, an undemanding multiple in our view. In terms of LTIP, our base-case estimates imply the new CEO stands to pick up just 61% of his final award in 2018; some investors may wish to be more optimistic.
Valuation/Risks Given the depressed level of earnings and nature of the turnaround opportunity at Balfour Beatty, we value the shares on 2016 and 2017 estimates. We apply EV/EBITDA (10x) and PER (17x) multiples consistent with historical valuations to our 2016 and 2017 estimates, with a 10% discount in the outer year. Risks to our valuation include further UK construction writedowns and an unsuccessful implementation of management’s turnaround plan."

Full Year Results

Summary
· Total revenue1,2 of £8.8 billion, up 2% at constant exchange rates (CER); order book2 at £11.4 billion (2013: £11.8 billion), down 7% at CER.
· Total loss for the year of £59 million (2013: £35 million).
· UK construction losses include a further £118 million write-down, following an assessment of the existing risk provisions by the Board.
· International construction revenues up 24% at CER to £1.0 billion, predominantly due to Hong Kong based joint venture; Middle East construction underlying losses of £15 million.
· Investments delivers consistently strong performance, with underlying profit from operations increased to £127 million (2013: £102 million). Directors' valuation of Investments portfolio at £1,300 million (2013: £766 million).
· Strengthened balance sheet with £219 million net cash. Net assets increased to £1,230 million (2013: £1,035 million), including a £306 million reduction in the pension deficits to £128 million.
· The Board decided not to recommend a final dividend, to ensure balance sheet strength is maintained, but expects to reinstate the dividend at an appropriate level, by March 2016.
· 'Build to Last' business transformation programme has gained early momentum. Phase 1 is 24 months of self-help: to deliver £200 million cash flow improvement and £100 million cost savings versus 2014.
· Significant progress in first 12 weeks of 2015 with Board changes, senior leadership appointments, programme work streams established and consolidation of UK support functions already underway.

Take your pick!

Investec Hold 238.05 185.00 - Reiterates

Numis Add 238.05 230.00 230.00 Reiterates

Westhouse Securities Sell 238.05 - - Reiterates

Liberum Capital Buy 238.05 285.00 285.00 Reiterates

So increased trading loss, no divi, huge pension deficit, reduction in order book and loads of write-offs yet the sp goes up and the brokers increase their target??? I suppose this is all 'better than expected'?

Merrill Lynch note:
"Balfour Beatty reported FY’14 results this morning with underlying EPS loss at 8.0p vs BofAMLe at -7.2p. The group unveiled a further £118mn provision in the UK Construction division was also impacted by £15mn of losses in the Middle East. Support Services were solid and the US was in line. Management is pointing to a potential impact from the legacy problematic construction projects over the next two years and there is no earnings guidance for 2015E. Nonetheless, the additional detail on the self-help plans and cost-cutting is an important positive, in our view.

Management provided more detail on its “Built to Last” restructuring plan. It aims to achieve of £200m cash flow improvement from working capital optimization and £100m of recurrent cost savings over 24 months. We note that, if successful, the cash optimization plan would over time broadly offset the cash impact of the £188mn of UK Construction provisions reported in January and March 2015.

Balfour Beatty will distribute no final dividend for 2014E, although it intends to resume dividend payments in 2016. This follows the cancellation of the share buyback in Jan 2015. The balance sheet is nevertheless in good shape in our view as the group reported £219m of net recourse cash at Dec-14, slightly higher than the provisional £180m figure reported in the January trading update. Net pension deficit at Dec-2014 is at c.£100mn vs. the “below £200mn” communicated in January.

We have trimmed our SOTP-based PO to 260p from 265p, mainly due to lower Construction JVs and Support Services valuations, while we continue to assign no value to Construction in the UK. We cut 2015E underlying EPS by 23% due to more conservative forecasts for the UK, Middle East and Support Services, but reduce 2016E more limited 3%."

Prefs on the up again - not a bad return from a boring yielder.

AGM TRADING UPDATE

Balfour Beatty, the international infrastructure group, is holding its Annual General Meeting at 11am today.

The Group is focused on rolling out its Build to Last transformation programme. Actions are being taken to strengthen operational processes and to improve efficiency across the organisation to achieve the initial financial targets of £200 million cash in and £100 million cost out over the first 24 months. At the same time, the leadership team continues to review the Group's businesses and manage the legacy problem construction projects through to completion.

Leo Quinn, Balfour Beatty Group Chief Executive said: "We are making progress as we work to deliver the initial phase of the Build to Last transformation programme, against a backdrop of major short-term challenges. The internal focus on cash is vital to maintain a strong balance sheet through self-help. At the same time, we see continued evidence that we retain the support, trust and confidence of our customers in Balfour Beatty's expertise. I continue to believe all our operations should achieve industry-standard performance against what appears to be a beneficial market environment."

Philip Harrison, as previously announced, will be joining the Group as Chief Financial Officer. The Group today confirms that he will take up his position and join the Board on 1 June, 2015.

ENDS

UBS comment on possible approach and takeover:
"It is unclear how credible the sources are and if a bid would actually be forthcoming. We note that this is the latest in a string of potential M&A scenarios involving Balfour Beatty over the past year, following the failed merger discussions with Carillion and the JLIF bid for the investment portfolio. The premium implied by a 290p bid looks on the low side and we would expect it to be rebuffed.

We suspect the motivation for a bid would be to gain access to the UK and US markets. We suspect this is particularly the case in the UK, where the government is aiming to attract foreign investment to fund infrastructure. In general, Government-backed Chinese contractors seem to be looking to diversify abroad and have recently acquired John Holland in Australia in a carve-out for A$1.15bn in December 2014. In the case of Balfour Beatty, the £1.3bn investment portfolio could be used to part-fund a deal.

Balfour Beatty itself is in the early stages of a turnaround after a very challenging 2014, which saw heavy losses, particularly in the UK. We note that new CEO Leo Quinn's LTIP vests at a maximum 380p Jan-17/Jan-18. We think a large-premium cash bid is still unlikely at this stage."

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Done and post above removed.

StockMarketWire.com
Balfour Beatty reports encouraging progress on the group's transformation programme but warns that results will be hit by an additional shortfall of £120m-£150m.

It says the on-going, in-depth review of group businesses has continued to identify legacy issues in the UK, US and Middle East which will result in an additional shortfall to 2015 pre-tax profit of £120m-£150m. The UK accounts for approximately two-thirds of this amount.

The group says the Build to Last transformation programme is already gaining traction. New project disciplines and financial controls are being embedded, the new senior leadership team is substantially in place and good progress is being made against the £100 million permanent cost reduction programme.

And it says that as a result of the actions taken under the Build to Last programme, net cash is expected to exceed £200 million at the half year end - substantially better than H1 2014, demonstrating the Group's ability to maintain balance sheet strength through self-help.

Group chief executive Leo Quinn said: "The issues we are working through are as I set out in March and legacy challenges remain. However, we are making encouraging progress on the Group's transformation. The positive response of our people to change, the continuing confidence of our customers in Balfour Beatty's expertise and the first signs of improving cash performance reinforce my conviction in the Group's long-term success."

I still hold only the prefs - I wonder if these (and others) will benefit from the new 'roads fund' announced yesterday.

StockMarketWire.com
Balfour Beatty, in joint venture with VINCI, has been selected to deliver a smart motorway package worth up to £607.4m, the largest of Highways England's three packages within its £1.5bn Smart Motorway Programme.

Balfour Beatty VINCI, a 60:40 joint venture, will deliver smart motorway upgrades to a 10 mile stretch of the M5 Junctions 4a to 6 in Worcestershire; a 12 mile section of the M6 Junctions 2 to 4 in the Midlands, and a 32 mile stretch of the M4 Junctions 3 to 12 in London and Berkshire.