Balfour Beatty profit soars as order book hits £12bn

Contractor Balfour Beatty has reported a 25% rise in half-year profits and said it expected trading to stay strong for the rest of the year.

The firm posted interim pre-tax profit of £95m, up from £76m in 2007. Revenue rose 28% to £4.3bn.

The company, whose contracts include the 2012 aquatics centre and the Burj Mall in Dubai, said its order book had risen 14% to £12.1bn and its interim dividend was up to 5.1 pence per share from 4.6 pence.

The builder, which spent £272m on acquisitions in the first half of the year, benefited from significant project wins in the Middle East, Asia and the US, where it secured a $330m Toll Road in Texas.

Its engineering arm showed particular growth, with a 69 per cent rise in profit to £44m, helped by progress in Dubai.

But profit in the rail sector dipped by £3m to £10m. The company said improvement in performance in the UK was “more than offset by the phasing of profit recognition on major contracts in the UK.”

Chief executive Ian Tyler said: “The first half of 2008 was a further period of substantial growth for the group both organically and through acquisitions. Financial performance improved significantly, our order book continued to increase and our cash position remains strong.

“We anticipate that order intake and trading performance will remain strong throughout the year and that we will make further good progress in the second half of the year.”