Balfour's PFI investment to rise

Balfour Beatty has no plans to churn its investment in PFI equity. "It gives us a long-term reliable income stream," said Mike Welton, chief executive.
To date, Balfour has spent £180m on equity stakes in its PFI projects, a figure which is set to rise to £200m in the next few months. Using the same multiple as Carillion to put a current market value on these investments, produces a total asset value
of £520m.
"As we have got bigger, we have had to ensure that we continued to generate cash, not start to absorb it," Welton said. "We have and as a result we were able to buy Mansell with our own cash and to continue to invest in PFI equity. We're going to keep it growing, we don't need to churn it."