Balfour Beatty increases profits
05 March 2009
Balfour Beatty reported sales of UK£ 9,4 billion (€ 10,7 billion) for 2008, up +27% on the UK£ 7,4 billion (€ 8,4 billion) recorded for 2007. Pre-tax profits also rose +24% from UK£ 201 million (€ 226 million) in 2007 to UK£ 249 million (€ 280 million) last year. The order book at the end of 2008 stood at UK£ 12,8 billion (€ 14,4 billion) up +12%.
Pre-tax profits for the building sector of the Group, before exceptional items and amortisation, rose from UK£ 70 million (€ 79 million) in 2007 to UK£ 88 million (€ 99 million) last year, a +26% increase.
As well as organic growth in the Group's established business, the increased profits reflected contributions from Balfour Beatty US, which was acquired from Centex in March 2007, and from Dean and Dyball and Barnhart, both acquired in 2008.
The civil and specialist engineering and services sector reported a 2008 pre-tax increase in profits to UK£ 104 million (€ 117 million), up +27% on the UK£ 82 million (€ 92 million) recorded 12 months earlier.
Primarily attributable to a strong performance in the UK roads sector, the division also benefitted from improved profitability in the US and from Gammon in Hong Kong and Singapore, as well as infrastructure projects in Dubai, UAE.
Pre-tax profits in the Group's rail and engineering business grew +3% to UK£ 41 million (€ 46 million), up from UK£ 40 million (€ 45 million) 12 months previously.
The Group's Public Private Partnership (PPP) concession business and PPP investment portfolio in 2008 grew +94% to record pre-tax profits of UK£ 31 million (€ 35 million), up from UK£ 16 million (€ 18 million) the previous year.
"Balfour Beatty produced another excellent financial performance in 2008," said Ian Tyler, Group chief executive. "We are strong both operationally and financially and the majority of our work is with public sector and regulated customers, who are long -term investors in infrastructure.
"While the difficult economic environment will have some impact on our business, we anticipate making further progress in 2009," said Mr Tyler.
