Balfour Beatty gains despite tough year for construction

Infrastructure firm Balfour Beatty saw a drop in profits in its construction division in 2011 offset by gains in professional and support services.

Total group revenues rose 3% in 2011 to £11.035bn with underlying profits from continuing operations gaining 2% to hit £331m. Pre-tax profits came in at £334m, 9% ahead of 2010.

Net cash at the end of the year fell from £518m in 2010 to £340m. The group's full year dividend has been boosted by 9% to 13.8p per share.

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Three out of four of Balfour Beatty's divisions saw profits from operations grow during 2011, with Support Services, which looks for maintenance contracts for assets once they are built, gaining 8% over the year to hit £67m.

The firm's biggest division, Construction, saw profits fall 16% to £169m on revenues of £7.05bn. Construction also saw its order book decline by 8% to £8.5bn. The group's total order book "held steady" at £15.2bn.

Ian Tyler, Balfour Beatty's Chief Executive said the company would continue to recycle capital from its investment business through 2012 and added he was: "excited by the opportunities in growth sectors such as rail and power and growth markets like Australia, Canada and India."

Shares in Balfour Beatty had risen 1.7% by 08:21. Over the last 12 months the stock has fallen 24%.

BS