Record order books and high expectations for new contracts mean Balfour Beatty is confident about prospects for the coming year after announcing pre-tax profits in 2007 up by 48 per cent.
The company’s preliminary results for 2007 showed the company’s order book was up 25 per cent to £11.4 billion with pre-tax profits rising to £201 million.
The Building, Building Management and Services division – which includes M&E specialists Balfour Kilpatrick and Haden Young – saw profits up 78 per cent to £75million as the company looked to become a “major player” in the US market and extend its presence in regional markets within the UK.
The report said: “UK public spending and private investor markets remain bouyant and conditions in our key US markets are also positive. Our high quality, long term order books, strong blue-chip customer relationships and current pipeline give us confidence in further substantial progress in the sector in 2008.”
The report said the purchase of Covion and Cowlin Construction in the UK and Centex Construction (now Balfour Beatty Construction US) and GMH Military Housing in the US had strenghened its position.
A joint statement by chairman Sir David John and chief executive Ian Tyler said: “We have record order books and an exceptionally strong pipeline of high-quality new work approaching contract.
“Our acquisitions will add substantially to our earning power. We are confident that we will continue to make further good progress in 2008 and beyond.'
The Civil and Specialist Engineering and Services division also saw a significant rise of 83 per cent to £86 million reflecting a strong performance in the UK supported by “significantly improved performance” by Gammon in South East Asia and Balfour Beatty Dutco in Dubai.