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Mansell wins new contracts in education and social housing to a total value of approximately £130 million

Balfour Beatty, the international engineering, construction and services group, announces today that its subsidiary, Mansell, the construction and property services company, has been awarded new contracts in education and social housing to a total value of approximately £130 million.

In the education sector, the company is to renew part of the school estate for Argyll & Bute Council under a £35 million contract. It has won £30 million of education building work for Norfolk County Council, which is in addition to its existing three-year framework partnering agreement with the customer. It is also to refurbish existing buildings and build a new extension at the University of London’s College Halls of Residence in a contract valued at £19 million and is to design and build new teaching facilities in Kilburn for the College of North-West London.

In the social housing market, Mansell has been appointed by the Metropolitan Housing Trust to construct 345 new mixed tenure housing units in Northamptonshire under a £37 million framework partnering contract. The development comprises 144 apartments, 114 two and three bedroom traditional houses and 87 houses and flats designed using new standards of energy efficiency.

Mansell is now established as the second largest participant in the fast-growing social housing market, to which the UK government has committed some £22 billion of expenditure over the next five years.

Commenting on these contracts, Balfour Beatty Chief Executive, Ian Tyler, said:

“Mansell has gone from strength to strength since we acquired the business at the end of 2003, with annual sales now exceeding £600 million. Much of the company’s work is in long-term framework contracts with blue chip clients and in the rapid growth sectors of education and social housing.”

It was also announced last week that advanced works on Balfour Beatty’s Early Contractor Involvement scheme to widen the M1 between the M25 and Luton (Junctions 6a-10) will begin today, November 14^th. The major works on the carriageways will begin early in the New Year. The scheme will widen 10 miles of the motorway to four lanes in each direction to relieve congestion and improve safety.

A joint venture of Balfour Beatty and Skanska were appointed preferred bidder for this £289 million contract in March.

Last week, the Highways Agency awarded Balfour Beatty the £171 million Early Contractor Involvement contract for the A421 scheme in Bedfordshire.

ENDS

Enquiries to:

Tim Sharp
Tel: 020 7216 6884


www.balfourbeatty.com

1. Mansell was acquired by Balfour Beatty in December 2003 for a total consideration of £42 million.
   


2. Over 70% of Mansell’s work comes from repeat business from a long-established, blue chip customer base.
   


3. Mansell’s major long-term customer relationships include those with BAA, BT, the Ministry of Defence, the Department for Work and Pensions, UNITE and a wide range of major UK housing associations.
   


4. Balfour Beatty is a world-class engineering, construction and services group, well positioned in infrastructure markets which offer significant growth potential. Its partnerships with public and private customers generate secure, sustainable income. Its financial position, with significant net cash and with strong operating cash flows, offers continuing flexibility to add additional capacity and expertise to the business mix and to make appropriate investments in PPP and other long-term growth opportunities.
   


5. Balfour Beatty Civil Engineering is a UK leader in road building and widening schemes. In December this year, it will hand over the major M25 widening scheme adjacent to Heathrow Airport ahead of schedule. In April, it completed the £132 million M77/Glasgow Southern Orbital PFI scheme in Scotland on time and on budget.