Balfour Beatty reports strong H1 performance and order book, wins two deals worth £690m

Construction company and FTSE 250 constituent Balfour Beatty (LON:BBY) has announced two contract wins totalling £690 million, while reporting increases in H1 revenues and profits.
The company has signed a contract to deliver the second phase of a satellite building to support Heathrow Airport's new Terminal 2 - T2B for BAA for £460 million and a £230 million street lighting contract for Coventry City Council.
Balfour Beatty will combine its design, construction, ground engineering, specialist mechanical and electrical expertise and the professional services capabilities of its recently acquired Parsons Brinckerhoff business to deliver the Heathrow project.

Balfour Beatty delivered the first phase of T2B ahead of programme in November 2009, and in the second phase will deliver a facility with 10 new aircraft gates in the area to the east of Terminal 1. Construction is set to begin in October 2010.

The 25 year deal with the Coventry Council will involve the design, installation and maintenance of 33,000 street lights and 6,000 signs and bollards during the five-year capital investment period, and the ongoing maintenance of all existing and new equipment.
Balfour Beatty will invest equity of approximately £6 million into the concession.
The group has also released its interim report today, revealing revenues of £5.2 billion compared to £5.07 billion a year ago and a 32% increase in pre-tax profits from £107 million to £141 million. The dividend was upped by 4% from 4.79 pence to 5.05 pence.
The operational highlights included the integration of Parsons Brickerhoff that continued to proceed ahead of the plan, a strong profit performance in the UK, US and Hong Kong and successful start-up of national operations centre, with good contract wins and extensions by Balfour Beatty WorkPlace. The sale of two PPP investments for £24 million has proceeded in excess of directors’ valuation. The group has been appointed as preferred bidder for one scheme under the Offshore Transmission Network Owners ("OFTO") regulatory regime in August.
Balfour Beatty’s order book stood at £14.6 billion at June 2010. The group also said it had a “number of opportunities in the second half of the year".
“This, along with the actions taken and proposed to drive efficiency, means we are well-positioned to manage any challenges in individual markets.  Our continuing progressive dividend policy reflects our confidence in the Group's ability to deliver growth over the medium term. Overall, we remain confident about the outlook for the group,” said chief executive Ian Tyler.