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| Up-to-date information of Balfour Beatty One of the largest British builders, Balfour Beatty plc has provided the trading update for the year ended 31 December 2005 in advance of its preliminary results announcement on 8 March 2006. In 2005, Balfour Beatty’s leading positions in its principal markets of healthcare, education, road and rail transport, utility systems, privately-financed projects and social housing continued to generate significant opportunity. During the year, the Group’s order book grew by 13% from £6.8 billion to approximately £7.7 billion, with approaching £1.2 billion more work at preferred bidder stage, including, most notably, the £520 million Birmingham Hospital PFI project. Operating cash flow was again very satisfactory. There is likely to be a net exceptional profit. The receipt of initial distributions by Barking Power from the administrators of TXU Europe and the gain on disposal of a 15% interest in three PFI road schemes will be partly offset by costs arising from the purchase of preference shares and the costs of repaying a term loan and settling a legacy legal issue in the US. Two deals of Balfour Beatty demonstrate continued confidence in the quality and value of PFI assets and ability to secure superior market returns. Balfour Beatty Capital Projects, the specialist PFI/PPP arm of the Group, has increased its shareholding in Consort Healthcare’s Edinburgh Royal Infirmary PFI concession from 42.5% to 73.9%. It has also sold a 15% interest in three of the roads in the Connect Roads portfolio, previously 100% owned. These transactions, which have a net cash cost of £18.1 million, take the total commitment of Balfour Beatty’s equity investment in PFI projects to £284 million. Meanwhile RCS, the road manager and maintainer of Balfour Beatty, has been awarded two major new long-term maintenance contracts in Scotland and in Essex with a total potential value in excess of £300 million. In Scotland, a joint venture of RCS and Mouchel Parkman has been awarded the contract for the management and maintenance of major trunk roads in the north west of the country by the Scottish Executive. RCS has also been awarded the five-year term maintenance contract for county roads in Mid and East Essex by Essex County Council. It covers general highways and winter maintenance as well as emergency response on a predominantly rural network. write your comments about the article :: © 2006 Construction News :: home page |