Contract wins help group buck subdued market

Balfour Beatty is trading in line with expectations for 2010 with an order book moving ahead of the 2009 year-end figure of £14bn.

The group said today in an interim management statement to 11 May 2010 that it was trading well in difficult economic conditions with a number of good contract wins.

In the UK, the group reported it is making progress on all major projects including the M25, Blackfriars Station and the London 2012 aquatics centre.

The US construction side of the business has seen a lower level of activity than in 2009, though the statement said that had been anticipated. It added that recent order intake has helped buoy this side of the business with a contract win for pre-construction and construction services for Dallas Fort Worth International Airport's seven-year terminal development programme.

In professional services, the group said that there will be a first full-year contribution in 2010 from Parsons Brinckerhoff, which is performing well and in line with its expectations.

The group’s £1.5bn support services business is performing well with an “excellent” forward order book.

The statement said: “Each of our business areas operates in a diversity of markets, which, allied to our capability to provide an integrated service to customers, gives our business strength and resilience. In spite of continuing economic uncertainty, we remain confident about the prospects for the group.”