Balfour Beatty Reports Good 2008

Balfour Beatty plc, the international engineering, construction, services and investment group issued an upbeat management trading statement this week reporting that trading in 2008 produced strong progress.

Its balance sheet and financial position remained strong, with average net cash for the second half of the year being circa £250million and at the year end its order book increased from the £12.1 billion order book reported at the half year.

In the Building sector there was strong overall growth in 2008, driven by the performance of acquisitions and the strength of the business with public sector.Growth in the Engineering sector has continuedwith the UK civil engineering businesses delivering good results, with a substantial forward order book.

Outside the UK, the business in Dubai performed well, particularly in infrastructure projects, and performance in Gammon was steady and profitability in the US.

Balfour Beatty said it expects to reach financial close on four PFI schemes in the first half of 2009 and added that it is continuing to benefit from growing spending in social infrastructure, such as schools and hospitals.