Balfour Beatty Announces Aquisition Funds

Balfour Beatty has said it will raise £180m through a share placement after announcing its 2008 results would be “at the top end of expectations.”

In a statement this morning the £7.5bn-turnover group said:

“Balfour Beatty’s strategy is to grow both organically and by acquisition in disciplines within or adjacent to its established core skills and principal geographic markets.”

The four areas it singled out are:

• Extending UK regional coverage in building and civil engineering
• Developing a major capability in support services
• Expanding its PPP operation beyond the UK
• Establishing a “strong multidisciplinary business” in the US

“We anticipate that order intake and trading performance will remain strong during the course of 2008 and that we will continue to add to our long-term earning power through investment and acquisition. We anticipate that 2008 performance will be at the top end of current expectations.”

Balfour Beatty’s share price dropped 5% to 430p in early trading due to the diluting effect of placing more shares on the market. The City welcomed the news that 2008 trading would be at the top end of expectations. The consensus forecast is pre-tax profit of £215m on turnover £6.3bn excluding joint ventures.