Big project wins in the Middle East, Asia and US help increase contractor's half year profits by 25%

Contractor Balfour Beatty has reported a 25% rise in half-year profits and said it expected trading to stay strong for the rest of the year.

The firm posted interim pre-tax profit of 拢95m, up from 拢76m in 2007. Revenue rose 28% to 拢4.3bn.

The company, whose contracts include the 2012 aquatics centre and the Burj Mall in Dubai, said its order book had risen 14% to 拢12.1bn and its interim dividend was up to 5.1 pence per share from 4.6 pence.

The builder, which spent 拢272m on acquisitions in the first half of the year, benefited from significant project wins in the Middle East, Asia and the US, where it secured a $330m Toll Road in Texas.

Its engineering arm showed particular growth, with a 69 per cent rise in profit to 拢44m, helped by progress in Dubai.

But profit in the rail sector dipped by 拢3m to 拢10m. The company said improvement in performance in the UK was 鈥渕ore than offset by the phasing of profit recognition on major contracts in the UK.鈥�

Chief executive Ian Tyler said: 鈥淭he first half of 2008 was a further period of substantial growth for the group both organically and through acquisitions. Financial performance improved significantly, our order book continued to increase and our cash position remains strong.

鈥淲e anticipate that order intake and trading performance will remain strong throughout the year and that we will make further good progress in the second half of the year.鈥�

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