Balfour Beatty hails its resilience as profits rise

Britain's biggest construction company said underlying pretax profit in 2009 rose seven per cent to 267m from 249m in 2008.

This is ahead of a forecast of 266m taken from a poll of seven analysts.

Balfour Beatty, whose activities span engineering, construction, road and rail transport, said its order book rose 10 per cent year-on-year to 14.1bn, which it said gives it "good forward visibility".

The company said its acquisition of US project management firm Parsons Brinckerhoff for $626m last year has transformed its professional services business and strengthened its US business.

"The breadth of our portfolio means our business is resilient," chief executive Ian Tyler said.

Balfour has positioned itself to benefit from the US stimulus in 2010, shielding it from less public spending at home, which is anticipated after the general election.

Analysts say that concerns about public spending cuts in the UK are fully reflected in its share price.

UK operations now account for about half of its business, compared with about 80 per cent four years ago.