Balfour's orderbook grows to £6bn

Balfour Beatty's trading update, issued this morning, said prospects are encouraging with the forward orderbook standing at more than £6bn, up from the figure of £5.1bn at the end of 2002.

Trading performance in 2003 was in line with expectations, with good progress made in the second half of the year. Cash flow was satisfactory and year-end net cash exceeded the half-year position of £104m after paying £42m for Mansell.

Segmental analysis shows that trading in building, building management and services was in line with the previous year. The Mansell acquisition should result in growth in this sector in 2004.

In the group's civil and specialist engineering businesses, performance improved in 2003, although some of the upswing anticipated in the US is still on hold as Balfour waits for final settlements to be agreed.

Rail engineering and services had a strong second half. "We do not anticipate that 2004's performance will be materially impacted by Network Rail's decision to take maintenance in-house," said the Balfour trading statement.