Contractor’s subsidiary Gammon Construction scoops valuable projects, but news fails to boost share value

Balfour Beatty has won a series of infrastructure work in Hong Kong worth a £190m, the contractor told the stock exchange this morning

The contracts were won mainly through subsidiary Gammon Construction, in which Balfour has a 50% stake.

A Gammon Electrical and Mechanical/Balfour Beatty Utility Solutions joint venture was appointed on a five-year contract by CLP Power to upgrade a transmission line in Hong Kong. This includes refurbishment and ongoing maintenance.

Developer MTR Corporation awarded Gammon a mechanical and electrical contract on rail assets, including building services installations at Hong Kong University Station and Sai Ying Pun Station. The work is expected to complete in 2014.

Gammon’s final contract win was for a swimming pool complex in Kwun Tong, which will include Olympic-size pools and incorporate a number of environmentally-friendly features. For example, there will be solar panels for electricity supply. Again, the contract is due for completion in 2014.

Despite the good news, investors have been fairly gloomy on Balfour stock today. Shares were down 0.6% on start of trading to 315.9p as at 9.22am.

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