Balfour Beatty has reported a 42% jump in profits and a 10% increase in its future order book for the first half of 2022, a strong performance which has seen expectations upgraded for the full year.

The first six months of the year has seen a 42% jump in underlying profit to £85m, compared to £60m in the same period in 2021.

A 10% increase in the group’s order book at £17.7bn, compared to £16.1bn in 2021, provides clear short and medium-term visibility.

There was also an increase in half-year average net cash at £811m, compared to £671m in 2021.

Looking confidently to the future, a statement in the report’s executive summary said: “The need to drive post-pandemic economic recovery has led governments in the group’s three chosen markets to boost spending on infrastructure and sustainability. 

“This significant expansion of state-backed infrastructure provides a positive operating landscape for the group. Given its proven track record of delivering world-class projects, Balfour Beatty is particularly well-placed to benefit from the growing focus on infrastructure which can mitigate climate change. Net zero targets dictate a redesign of energy infrastructure from renewable electricity generation and storage, smart grids and carbon capture to hydrogen and nuclear.

“At the same time, new global challenges have arisen, in the form of higher energy and raw materials prices, inflation and knock-on wage pressures and supply chain issues. Against this backdrop, the group’s financial and operational strengths and its mix and nature of order book provide stability, while its leadership and disciplined processes ensure proactive management of performance.”

Leo Quinn, Balfour Beatty Group chief executive, said: “With the group well-positioned to capitalise on the growing infrastructure market, underpinned by its unique capability and balance sheet strength, the upgrade to the full year performance gives the board further confidence in future capital returns.”