Balfour Beatty's Hong Kong joint venture, Gammon Construction, has won a significant airport contract on its home territory, while Balfour itself has reported revenue and profit growth for 2011.
Total group revenues rose 3% on the prior year to hit £11.035bn; while underlying profits from continuing operations rose 2% to £331m. Pre-tax profits came in at £334m, 9% ahead of 2010.
The group's full year dividend has been boosted by 9% to 13.8p per share.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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.
Gammon's contract is for the construction of a new concourse in the central area of Hong Kong airport, with work starting immediately and scheduled for completion in September 2015
Ian Tyler, Balfour Beatty's Chief Executive, described Gammon deal as "very significant".
Commenting on the group's results he said 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 8:21am. Over the last 12 months the stock has fallen 24%.
Pension withdrawals on the rise, HMRC data reveals
Pension withdrawal data has led to some raising concerns over savers ‘raiding’ their pensions unsustainably.
By John Fitzsimons Published
ONS: UK economy recovered from pandemic faster than previously thought
Revisions from the ONS showed the UK economy has grown since the pandemic, while the latest data showed GDP grew in the second quarter of 2023.
By Nicole García Mérida Published