Contractor Balfour Beatty witnessed a 9% increase in underlying pre-tax profit in the year to 31 December 2011 and reports a stable order book bolstered by the announcement today of a HK$6.2bn (£507M) contract win by one of its major consortiums in Hong Kong.
Revenue was up 5% to £11.04bn from £10.47bn which translated into underlying pre-tax profit of £334M against £306M for the previous year, equating to a rise of 9%.
Underlying profit from operations improved in Professional Services, Support Services and Infrastructure Investments, although Construction Services profit was lower, primarily as a result of anticipated margin decline in US construction, said the firm in a statement.
Forward orders remained stable at £15.2bn, which had been helped by today’s announcement that Gammon Construction, in which Balfour Beatty has a 50% stake, had won its biggest ever solo contract worth £507M to develop Hong Kong International Airport.
Balfour Beatty said it was “pleased” with the operating performance of consultant Parsons Brinckerhoff, which it said had also contributed to its plans for growing income from skills in asset knowledge. It also plans to increase income from the investment business and said its recently established infrastructure funds management business had made good progress.
“We delivered a strong performance in 2011, made further progress towards the delivery of our strategy and demonstrated the diversity, flexibility and resilience of our business,” said chief executive Ian Tyler. “We are excited by the opportunities in growth sectors such as rail and power and growth markets like Australia, Canada and India.”