Balfour Beatty has signed a £460M construction contract to deliver the second phase of a satellite building to support Heathrow Airport’s new Terminal 2 - T2B for client BAA.
Balfour Beatty use the design and the professional services capabilities of recent acquistion Parsons Brinckerhoff to deliver the project.
Balfour Beatty successfully delivered the first phase of T2B ahead of programme in November 2009. The second phase of T2B, for which Balfour Beatty has already provided design services, will deliver a facility with 10 new aircraft gates in the area to the east of Terminal 1. It will incorporate an underground link from the satellite to the main building of the new Terminal 2 development and a large baggage facility in the basement which will be subject to fit-out in the future. Construction work is due to begin in October 2010.
The firm made the announcement as it revealed results for the first six months of 2010. Revenue including joint ventures and associates was up 3% at £5.2bn from £5.1bn for the same period last year. Profit from operations was up 34% to £151M from £113M. Pre-tax profit was up 32% at £141M. Period-end net cash stood at £500M.
The firm said it was now looking for £30M in annual efficiency savings through procurement savings and the creation of a centralised back-office support centre. It said it was an important move that would enhance its competitiveness.
The one-off costs of implementation are approximately £25M in 2010/11, plus around £10M in additional IT investment.