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Balfour Beatty turnover surges past the £10bn mark

4 Mar 10 Balfour Beatty’s turnover has grown by 9% to £10.3bn for the year ending 31 December 2009.

Balfour Beatty’s turnover has grown by 9% to £10.3bn for the year ending 31 December 2009.

The figure includes revenue from joint ventures and associates.

The UK’s largest construction group saw its pre-tax profit fall marginally to £267m, compared with the £270m declared 12 months ago. However, the figure for 2008 was boosted by £21m-worth of exceptional items, mostly in relation to is pension scheme.

The UK accounted for 54% of turnover, the US 31% and rest of the world 15%.

Balfour Beatty’s net cash stands at £572m, including its PPP subsidiaries, a healthy rise from the 2008 figure of £440m.

The group reported an order book of £14.1bn (2008: £12.8bn)

However, its order book in construction services reduced by 14% to £8.2bn during the period, an 8% reduction.

Balfour Beatty said it performed well in the “difficult” UK building market, particularly the education sector, which partially offset a reduced volume of work in the regional building business.

Its UK civil engineering business was also strong, boosted by the M25 widening. The group's smaller ground engineering business saw a decline in revenues.

Balfour Beatty’s rail businesses, which operate in the UK, continental Europe and other selected international markets, suffered from reduced volumes in the UK and Germany.

The firm said it had reacted quickly “to reduce costs where volumes have reduced”. In addition, it would “continue to seek broader procurement and cost savings through our operating companies working together more closely”.

Balfour Beatty chief executive Ian Tyler added: "Our business has continued to perform well and finished the year with a strong order book.

“The acquisition of Parsons Brinckerhoff realised a number of the Group's long-term strategic objectives. We have created a high-quality business operating across the infrastructure lifecycle, which is uniquely placed in major markets to benefit from the long-term growth in investment in infrastructure.

“There is substantial additional value in the combination of our capabilities for major customers. Increasingly, major infrastructure owners need an integrated capability from their trusted suppliers, resulting in less interface risk and greater certainty of delivery.

“The breadth of our portfolio means our business is resilient. In spite of economic uncertainty, we remain confident about the prospects for the Group."

* Balfour Beatty has announced that it has sold a 23.9% interest in the Edinburgh Royal Infirmary PPP concession, and its entire 50% interest in the Aberdeen Waste Water PPP concession, both to AMP Capital Investors, for £24.3m. The transactions will generate a profit of £21m for Balfour Beatty.

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