Building up a momentum...
BALFOUR Beatty, the UK’s biggest construction firm, today announced a fresh haul of major contract wins alongside forecast-beating annual profits.
The company said it expected further progress this year as Government steps up plans to spur on the economy with building projects, despite a “general slowdown” in private sector work.
The firm bolstered its £12.8bn order book with a trio of schemes in the US worth £341m in total. Balfour also posted pre-tax profits of £249m for 2008, 24% ahead of the previous year and ahead of City hopes.
Like rival Carillion, Balfour Beatty has seen a slowdown in the Middle East and said the more difficult economic climate creates “greater uncertainty”.
The firm, which celebrated its centenary and joined the FTSE 100 Index for the first time earlier this year, has a broad geographical spread and heavy presence in markets such as infrastructure likely to receive public support.
The firm’s civil engineering business saw operating profits lift 27% to £104m, helped by wins such as the A46 Newark to Widmerpool road in Nottinghamshire - a scheme brought forward under Treasury stimulus plans. Balfour also has a 40% stake in the joint venture set to begin on a £5bn widening of the M25 motorway later this year.
Its main building division was helped by several acquisitions which delivered a first full-year contribution to help lift operating profits 26% to £88m.
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