Balfour Beatty profits up after US acquisition
Balfour Beatty joined other construction giants in hailing a surge in profits, but - like its rivals - warned against unbridled optimism for complete recovery.
Hard work: This year will be tough in the UK, despite recent contract wins
Balfour's underlying profits rose 21% to £338m in 2010 following the integration of its recently acquired American project manager Parsons Brinckerhoff.
This growth overseas actually offset weak construction markets in the UK and the US.
Balfour's shares are up 9.5p (2.8%) on the day so far at 351.1p.
The firm, which carries out upgrades on roads and railway lines and builds hospitals and schools, said it has a record order book of £15.2bn, up 8% on a year ago, after a series of contract wins in the UK and abroad.
These included work on Heathrow's Terminal 2B, Crossrail and Building Schools for the Future projects, as it recovered from earlier uncertainty surrounding the Government's comprehensive spending review.
But it expects its UK business, which accounts for about half of its revenues, to remain difficult this year.
Its infrastructure investments division had an excellent year in the UK after winning four schools projects, including programmes at Ealing and Oldham, and is waiting to hear back on a number of other bids.
Balfour expects its support services division, which won a £250m contract from North East Lincolnshire Council to provide highways transportation and planning, to benefit as more local authorities outsource work to the private sector.
Although its professional services division, which helps design and manage construction projects, performed well overseas its revenues declined in the UK.
The firm's recent projects include the widening of the M25, improvement works on the A3 near Hindhead in Surrey and the M74 near Glasgow, as well as building the aquatic centre at the London 2012 Olympic Park.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- How to invest for income and growth: SAINTS' James Dow
- Mail Online takes a tour of Gatwick's modern EV charging station
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- Land Rover unveil newest all-electric Range Rover SUV
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Mini Cooper SE: The British icon gets an all-electric makeover
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Cerillion boosted by $11.1m contract with provider of...
- Used car marketplace Cazoo looking for buyers as it nears...
- Anglo strikes out alone - but can it survive a bid...
- London's 'Mr Super Prime' to take centre stage in...
- Anglo American rejects rival BHP's £34bn second takeover bid
- Police not interested in shoplifting, says M&S as thefts...
- Former Chancellor Nadhim Zahawi to chair Very Group
- Diploma shares top FTSE 100 risers after firm raises...
- How reliable are the most popular used cars? Here's how...
- UK Government sells another chunk of NatWest shares
- I repeatedly bail out my partner from his financial...
- MARKET REPORT: FTSE falters despite UBS call to buy...
- Heathrow takes fresh swipe at the tourist tax as it...
- Gamestop shares double as 'meme stock' social media...
- BUSINESS LIVE: Nadhim Zahawi to chair The Very Group;...
- Phoenix Group finance chief to step down from insurer
- A MILLION more people have taken on mortgages they will...
- Taxpayer stake in NatWest falls below 27% as Treasury...