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

StockMarketWire.com
Infrastructure group Balfour Beatty's joint venture, Gammon Construction, has won a HK$3.2bn contract to build a major residential development in Hong Kong.

The project in Tsuen Wan, Hong Kong includes constructing seven residential towers, ranging from 12 to 40 stories, as well as retail and recreational facilities.

The total construction floor area is 112,000m2. Upon completion, scheduled for 2018, the development will provide around 900 residential apartments.

The project also involves building a public transport interchange and five footbridges. Chinachem Group developed the project, and the contract is with TW5 Cityside Property Development.

Balfour Beatty group chief executive Leo Quinn said:
"This project reflects the continuous growth in the residential market across Hong Kong. The government has projected that the private housing sector will, on average, produce over 14,500 flats each year in the next five years, representing an increase of about 30% compared to the last five years."

StockMarketWire.com
Balfour Beatty, the international infrastructure group, has been appointed as the civil contractor for an integrated team that will deliver the ten-year Thames Estuary Asset Management Programme for CH2M Hill, on behalf of the Environment Agency, and anticipated to be worth up to £250m to Balfour Beatty.

The £300m programme is the largest single flood risk asset management programme ever awarded in the UK. It is designed to manage and deliver capital investment works to the Thames tidal flood defences along the 170km length of the Thames Estuary, protecting 1.25 million people from flooding risk across Kent, Essex and London and £200 billion worth of property, UK government assets, major infrastructure and businesses. The programme will involve creating tidal walls and embankments, refurbishing works of active assets, (including major flood barriers), new assets such as pumping stations, capital renewals and replacements. Packages of major or complex maintenance works will include repairing fixed flood defence walls or subsidence of earth embankments. CH2M Hill leads the programme supported by delivery partner Balfour Beatty and a number of other specialist suppliers.

Balfour Beatty's group chief executive, Leo Quinn, said: "We look forward to being part of an integrated team that will deliver this vital programme along the Thames Estuary. Balfour Beatty is bringing significant expertise in flood defence to protect one of the world's greatest cities from the sea. And, with our partners we will offer long-term, skilled, opportunities to the next generation of civil engineers."

Not sure why the market doesn't like this company at the moment unless it is due to expected rate hike in USA.


www.lse.co.uk/ShareAllNews.asp?shareprice=BBY&code=b6rvo0uf&headline=UK_MIDDAY_BRIEFING_WPP_Profit_Growth_Meets_Hopes



Mon, 9th Mar 2015 12:20
LONDON (Alliance News) - WPP Monday reported higher profit for 2014, as the media buying giant reported further strong growth in emerging markets, but also a strong performance in the US and UK and a performance in continental Europe that belied the economic downturn in the region.

It reported a net profit of GBP1.08 billion, up from GBP936.5 million in 2013, as revenue grew to GBP11.53 billion, from GBP11.02 billion and its profit margins improved. The revenue growth came from both like-for-like growth and acquisitions, and came despite a 6.7% reduction due to exchange rate fluctuations. Its results met analysts' expectations.

WPP, which made 65 acquisitions and investments in 2014, also forecast similar growth for 2015, with like-for-like revenue and net sales expected to rise by over 3%. It is targeting a net sales margin improvement of 0.3 point, excluding the impact of currency.

WPP said that the "pattern" for 2015 looks similar to 2014, although without any events such as the World Cup to boost marketing investments. Its concerns for the year are centered around continuing fragility in the Eurozone, a "litany of woes" in the Middle East, a slowdown in emerging markets, the US's deficit and debt and the impact of Federal Reserve easing and tapering, and uncertainty surrounding the outcome of the UK's upcoming general election.

"Advertising as a proportion of GDP should at least remain constant overall, although it is still at relatively depressed historical levels, particularly in mature markets, post-Lehman. Advertising should grow at least at a similar rate as GDP, buoyed by incremental branding investments in the under-branded faster growing markets," it said.

Still, like-for-like revenue was up 6.7% in January, with like-for-like net sales up 3.9%.

"All regions, except Latin America, were up, with Asia Pacific and Africa & the Middle East up well above the average net sales growth. All sectors strengthened, with advertising and media investment management, data investment management and direct, digital and interactive, up the strongest," it said of the month.

WPP also sweetened the results for its investors, raising its dividend to its planned new earnings payout target a year ahead of schedule. It is paying dividends of 38.20 pence for 2014 as a whole, up from 34.21p in 2013, meanings it's paying out 45% of earnings, up from 42% in 2013.

"The achievement of the targeted 45% dividend pay-out ratio one year ahead of schedule now raises the question of whether the pay-out ratio target should be raised further, a question your board will be shortly considering," it said.

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Markets: UK shares trade lower as investors continue to entertain the potential for a summer rate hike by the US Federal Reserve and as focus shifts to Monday's Eurogroup meeting on Greece.

BBY has a nasty habit of falling short of it's targets, the last profit warning was only last September, shortly after Carillion walked away. Might need a few upbeat sets of figures to get investor confidence back, imo.

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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