Venerable Balfour Beatty plc is a household name in the UK, and for a good reason: The construction and infrastructure behemoth is present on construction sites across the UK. From roadworks over public buildings to the facility management of defence installations, BB got stakes everywhere in the country (and at many sites in the US, too, for that matter).
That positions the company well to profit from the Labour government's initiative for growth, the related, mooted slashing of planning and building regulations in particular.
Additionally, Whitehall aims for the biggest boost in defence spending in recent decades, just as any other European government confronted with the double menace of an aggressive Russia to the East and a bitchy United States to the West. Though the bulk of this extra spending will be going to military hardware for sure, it is also military installations and particularly bases of the Royal Navy and Air Force that will be reactivated/expanded in the years to come - and that's where Balfour stands to profit.
Taken together, this provides the company with a reliably expanding, long-term revenue stream, while margins ought to keep up well in the face of limited competition in key markets (the bulk of construction capacity in the UK is concentrated on housebuilding, with Galliford Try and Balfour as the major exceptions).
The only caveat is a somewhat stretched balance sheet. With interest rates at least stable or, more likely, even on a downward trajectory in the near to mid-term, however, there should be no trouble resulting from the company's sizeable debt.
Taken together, the company is an outstanding investment proposition in the UK's construction sector, with no major threat discernible. True, labour relations or relatively sluggish progress in the government's growth agenda might become somewhat of a brake on the share price's progress, but no impediment in general.
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