Balfour Beatty – Brief Share Price Analysis

So, my web coding skills are gradually progressing and I hope to make some progress with the company tables (mentioned in previous posts) over the next few weeks. In the meantime, and as Balfour Beatty have been prevalent in the trade press over the last few months, I thought it may be useful to have a quick look at some historical share prices.

Recently, BB have undertaken a major restructure (a realignment which is likely to yield substantial savings at the loss of around 650 jobs), and a supply chain consolidation exercise. Earlier this month they released a profit warning after reporting a lower profit forecast for 2012. As one would expect, this caused a steep decline in share price, but not below the key support zone of around the 245 level. More recently, contract wins in mid-November have set the bulls back in motion, although, BB’s price seems to be struggling to break through the resistance zone at around 253. BB’s average share price so far this year comes in lower than that of 2011 but the lowest price in 2012 has not sunk below the 2 year low of 214.6 posted last November.

You can read BBs Q3 Interim Management Statement here:

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11389501

We are hoping to undertake lots more analysis of performance over in the future. Once per month, we will have a detailed look at the performance a chosen company, including:

–          History

–          Fundamental analysis

–          Technical analysis

–          Recent and noteworthy news such as contract wins, restructuring, etc.

–          Speculation on future developments

We will also be home to tables of high-level statistics on all listed construction, support services, and real estate companies, updated weekly.

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Structure of the UK Construction Industry – August 2012

It’s been a while since my last post- I have been wholly consumed with work and other obligatory life commitments, but a poor show none the less. So as some kind of recompense, I thought I would take a look at some of the most recently published ONS construction data in some detail and upload some interesting charts.

The rather messy charts below (click on it to enlarge) represent data from the ONS Construction Statistics No. 13, 2012 Edition published 24th August 2012. Let’s start by looking at a snapshot of our industry constituents – total firms by trade and civil engineering firms (the field I work in most) in more detail…..

UK Construction Industry Structure 08/2012

UK Construction Industry Structure 08/2012

It would be interesting to visualise how the industry has changed shape over the years but having read some of the background information, it would seem that any shift would merely represent changes in the registers (the Builders Address File (BAF) pre 2010 and the Inter-Departmental Business Register (IDBR) from 2010). It should also be noted that the size of firms will not be entirely accurate – ‘firms’ are recognised as ‘reporting units’ so larger companies may report through a plethora of separate operating companies/regional units/divisions/etc.

The moral of the story…..don’t take all data and statistics at face value, especially summary headlines – context is everything.

Next post I’ll do a summary of the most useful construction industry indicators that I personally use on a monthly basis. Something to look forward to right?! I will try to provide some more interesting visualisations too!