Allpoints - Balfour Beatty Rail

Considerable
amount of
activity in UK
and overseas
By Managing Director (Interim)
Keith Hampson
WE recently celebrated the 10th
anniversary of the formation of BBRP,
a milestone that gave us the
opportunity to reflect on a decade of
achievement by the company.
However, our birthday was not just
a time to look back. We can also
celebrate the fact that there is
currently a tremendous amount of
activity both in the UK and overseas.
As well as our core teams based in
the UK, BBRP now has staff in India,
Chile, Australia, Singapore and the
USA working on existing projects or
on assignments to win new
contracts.
The hard work of our tendering and
estimating teams is continuing to pay
off with two new contract awards,
which are both featured on the front
page of this issue of All Points. And,
looking ahead, with the significant
tender workload set to continue this
year, prospects are promising.
Like all successful businesses,
BBRP has to adapt to deal with both
internal changes and external
factors. This has certainly been the
case in recent months, for example
with the reorganisation of BBR in the
UK. During times of such change, we
must remember that the fundamental
core of what we do successfully
remains intact. Keeping a clear
vision of our collective role is vital
during these periods.
Finally, I have to report we had a
number of safety-related incidents
during the summer. I know it’s been
said before, but we cannot be
reminded enough that we have a
collective responsibility to carry out
all our activities with the utmost
regard for people’s safety.
2
Interim pre-tax profits
rise by 36 per cent
INTERIM Results announced by Balfour
Beatty plc for the six months to 30 June 2007
show that underlying pre-tax profits stood at
£76 million – up 36 per cent on profits for the
first half of 2006. The exceptional write-off of
£103 million on Metronet was offset by two
exceptional gains elsewhere.
An increased turnover to £3,505 million
reflects the continuing growth of the Group, in
particular from acquisitions, which is
underlined by a strong operating cash
performance of £181 million and an order book
standing at £10.6 billion, up by 20 per cent since
the beginning of July last year.
The Group also substantially enhanced the
future earnings growth potential of the business
with the acquisitions of Centex Construction in
the US (now Balfour Beatty Construction US),
Exeter International Airport and a number of
other small but important niche acquisitions.
Commenting on the results, Sir David John,
Chairman, and Ian Tyler, Chief Executive, said:
“It is pleasing to report a first half year of
particularly strong profit and earnings growth,
coupled with a further significant strengthening
of our cash position and growth in our order
A London Underground train
on the new Piccadilly Line
Extension at Heathrow Airport’s
new Terminal 5 project which is
now nearing completion.
book. With our workloads continuing to
increase, projects progressing well and a full
six months’ contribution from Balfour Beatty
Construction US, we anticipate further good
progress in the second half of the year.”
In the Rail Engineering and Services sector,
profits increased by 18 per cent to £13 million.
This figure reflects improved performance in
the UK rail businesses, with the highly complex
Heathrow Terminal 5 project nearing
completion, and high levels of activity in
renewals for Network Rail and trackwork for
the London Underground system. It is expected
to see continuing good progress in the second
half of the year.
For the longer term, Balfour Beatty made
particular reference to the recently published
UK government’s White Paper on its 30-year rail
strategy which highlighted £10 billion is to be
invested in network capacity enhancement
between 2009 and 2014.
Commenting on BBRP’s performance, Rory
Mitchell, Finance Director, said: “BBRP had a
satisfactory first half performance and we
remain on course to meet our year end
targets.”