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We’re not there yet but recent results show we’re getting closer. And two big winners are Balfour Beatty (sales £7bn) and Carillion (sales £4bn).
Both companies have used acquisitions cleverly. But they’ve done it in different ways.
Carillion
Carillion’s the flashier tale. Back in 2004 it was one of a cluster of middling integrators. Mowlem and McAlpine were among the others.
Mowlem and McAlpine messed up. Carillion pounced and now it’s got a seat at the top table. Moves like those take a certain doing and to date it’s all gone swimmingly.
Balfour Beatty
Picking through the figures (see box) and Balfour Beatty seem both industrious and more considered. A couple of disposals have funded 16 acquisitions. It’s seemingly hedged and risk averse. But the bold numbers underplay the skill. On the disposals Balfour Beatty got a fat price. And the Centex consideration while just £184m, bought £800m of sales and a transformed US business.
Who’s the winner?
Like sports day at a progressive school, it’s possible that everyone’s a winner. We can’t help but admire how far Carillion has come.
And Balfour Beatty’s less flashy attributes look good for more of the same in the next few years. In a sector that always produces its share of losers, it’s nice to report on outstanding success.
Zoom chartTim Bennett is a Consultant at Credo.
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