Balfour Beatty's future orderbook stands at £8.8bn

Balfour Beatty’s orderbook stands at £8.8bn. The figure represents a rise of 16% since the start of the year.

Announcing the group’s latest interim results this morning, chief executive Ian Tyler said: “It is pleasing to report another period of robust profit and earnings growth, supported by a strengthening of our cash position.”

Figures (six months to 30 June 2006) show that Balfour now has £350m of net cash, £50m more than at the same time last year. The pile would have been higher but Balfour has been on the acquisition trail, spending to total of £70m during 2006 on three acquisitions, one of which was Birse.

Balfour’s turnover in the first half of 2006 ran to £2.8bn (same period last year: £2.3bn). The pre-tax profit was £39m, having been trimmed back by exceptional charges running to £21m.

The largest exceptional element was the £17m goodwill write-off against the 2001 acquisition of an American business called National Engineering and Contracting Company. Performance has been unsatisfactory. A new head, Mick McCarry, has been brought in to sort things out.

Balfour’s civil and specialist engineering services division has an orderbook of £4.4bn. Profit (before exceptionals) was 41% higher at £24m, thanks largely to higher contributions in both the utilities and road maintenance businesses.

Balfour’s UK civils business, now with Birse on board, should have a turnover of £70m in the full year. The Birse buy has “much improved geographical and sector coverage” said Balfour.