Balfour Beatty plc, the international infrastructure group, is providing this trading update ahead of its results for the half-year ended 29 June 2012 which will be announced on 15 August 2012.
There has not been any material change in trading conditions since our Q1 Interim Management Statement of 9 May 2012. The order book has remained stable at £15 billion, giving us good visibility for the remainder of the year, and overall Group trading performance continues to be consistent with our expectations.
We have continued to implement our PPP asset disposal programme, achieving a gain £10 million higher than originally expected from our planned disposals for the year. This will however, be offset in the Group’s overall result by cost increases in a small number of contracts in the Utilities sector. As a result of this shortfall, Support Services profitability will be further skewed to the second half of the year.
Construction Services has remained robust overall in the face of challenging markets, with a weak performance in the Rail division, predominantly in Europe, largely offset by strong performance in our joint venture businesses.
Our cost efficiency programmes remain on track.
The average net cash position has, as previously announced, reduced since Q1 due to the unwind of working capital as a result of the business cycle and continuing change in the mix of business. The second half is expected to see a working capital related cash inflow.
Our order book remains strong despite the continuing uncertainty around governments’ investment decisions and the absence of larger, more complex projects. We continue to take action to mitigate the impact these market conditions have on our business while positioning the Group to take advantage of the positive medium and long-term prospects for infrastructure markets. We remain confident that 2012 full-year performance will be in line with expectations.
Balfour Beatty plc
Tel 020 7216 6924
Balfour Beatty plc
Tel 020 7216 6865
This document contains forward looking statements which have been made in good faith based on the information available at the time of its approval. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of risks and uncertainties that are inherent in any forward looking statement which could cause actual results to differ materially from those currently anticipated.
Notes to Editors:
1. Balfour Beatty (www.balfourbeatty.com) is a world-class infrastructure group with capabilities in professional services, construction services, support services and infrastructure investments.
We work in partnership with our customers principally in the UK, continental Europe, the US, South-East Asia, Australia and the Middle East, who value the highest levels of quality, safety and technical expertise.
Key infrastructure markets include transportation (roads, rail and airports); social infrastructure (education, specialist healthcare, and various types of accommodation); utilities (water, gas and power transmission and generation) and commercial (offices, leisure and retail).
The Group delivers services essential to the development, creation and care of these infrastructure assets including project design, financing and management, engineering and construction, and facilities management services.
Balfour Beatty employs 50,000 people around the world.