UK construction firm poised for profits boost

The UK’s biggest construction firm, Balfour Beatty, was today looking forward to forecast-beating profits after strong trading across the group.

The London-based company’s shares climbed more than 7% as it added that this year’s results had been buoyed by “good settlements on some completed projects”.

Balfour Beatty has also sealed new contracts including a £136m (€191m) health scheme in Greater Manchester and been picked by Network Rail’s for rail renewal work, adding to the £10bn (€14bn) order book reported in August.

Panmure Gordon analyst Andy Brown described the firm’s update as “unexpected but positive” and lifted full-year profit forecasts to £195m (€274m) – nearly 30% ahead of last year.

The upbeat expectations come after expansion at home and abroad during this year.

In February, the firm bought US-based Centex Construction and in August paid £52m (€73m) for privately-owned Bristol builder Cowlin, which operates across the West Country.