BALFOUR BEATTY PLC

Financial Analysis- Balfour Beatty plc



Summary

This report focuses on the construction infrastructure company Balfour Beatty plc which is one the best construction company in UK and in the world. They have diversifies operation, clients and networks world across the world. Profit is likely to stay low in the short term, as competitive conditions remain intense across the UK construction market. Nevertheless, profitability will strengthen in line with improved demand conditions from 2014 through 2017. The industry is forecast to regain the strong profit performance it enjoyed in the early 200s. The expansion of profit margins in the strongest-growing market segments (e.g. telecommunications, transit and conservation projects) will outweigh the softer profitability in the slower-growth mining and recreational infrastructure markets. The vision of Balfour Beatty is to differentiate themselves with their competitor through developing one project and one relationship, and according to the management of Balfour, this vision is the most accurate for the industry of commercial construction. For customer satisfaction the products of Balfour, contributes towards the enhancement of their customer when constructing building, roads, airport etc. In addition, Road and mass transit construction, Balfour Work done on transportation infrastructure construction relatively strong growth in the value of construction put into place over the past five years. Road construction, generated from work on highway, bridge and tunnel construction.

Financial Analysis- Balfour Beatty plc

Overview of the Company

Balfour Beatty plc (LSE: BBY) is the second largest company in UK and 15th largest in the world for construction, building, engineering, civil engineering, military housing, rail and investment services company. Their customers are in UK, US, Australia, Middles East and South-East Asia. Their business has been divided into four segments which are:

Professional Services

Construction Services

Support Services

Infrastructure Investments

Organization Strategy of Balfour Beatty

The vision of Balfour Beatty is to differentiate themselves with their competitor through developing one project and one relationship, and according to the management of Balfour, this vision is the most accurate for the industry of commercial construction. For this, they have assembled capable employees so that they can grab long term growth opportunities. Their strategy is to combine the core strength of employees that are expertise in technical flied, local and other knowledge, understanding complex customers and integrator capability. This differentiates them more in the industry and this has been proved through the success of their complex projects (www.balfourbeatty.com).

Their future strategy has been design in such way that offers them an outstanding medium and opportunity of long term growth in the competitive infrastructure market. Balfour Beatty has always focused to make place in market and grow in vertical integration such as rail, power, transportation and mining sectors. Balfour strategy is to deliver greater value to their customer so that they can trust them regarding the complex and critical handling of the assets which is very difficult by the other companies in the industry. This part is important as they have direct impact on the societies such as providing school is not enough there should be a good education in ...