Balfour powers forward following dispute settlement

Balfour Beatty has today (Thursday) announced a £17m profit bonus thanks to the settlement of a long-running dispute between Barking Power and TXU Europe.

Balfour has a 25.5% stake in Barking Power. It lodged a claim for damages for breach of contract running close to £180m after TXU Europe, part of a global power supply group, went into administration in November 2002.

Barking Power’s first dividend runs to £112m. A second distribution is anticipated later this year, followed by a final one in the first quarter of 2006.

The initial payout will generate a post-tax gain of £68m of which Balfour’s share runs to £17m.

Last month, Balfour announced its 2004 financial results which showed a pre-tax profit of £260m. The reward was boosted by a windfall £140m profit from the sale of Andover Controls.