Balfour Beatty set to unveil robust results

BALFOUR Beatty is expected to defy the gloom surrounding the construction sector and unveil robust results in its half-year results on Wednesday.

The group, which worked on high-profile projects including the Olympics Aquatics Centre and Crossrail in London, is expected to report an eight per cent increase in underlying pre-tax profits to £149m for the six months to June 29.

The construction sector, according to official figures, had a dismal first half, dragging the economy into the longest double-dip recession since the 1950s.

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But analysts expect 103-year-old Balfour to reassure the market with solid results, a positive outlook and higher interim dividend.

The past weeks have seen several announcements by the Government and other regulators on infrastructure investment plans and plans to support infrastructure lending.

Manu Rimpela, analyst at Deutsche Bank, said: “These are clearly positive steps in the right direction and highlight the long-term potential in the UK infrastructure market, from which Balfour Beatty is well-positioned to benefit.”

The Government said it will underwrite up to £40bn of construction projects, while Ofgem plans to spend £22bn by 2021 and the rail investment target for 2014 to 2019 has been increased by £4.2bn.

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The group’s shares are about six per cent higher than they were at the start of the year.

Balfour works in more than 80 countries and provides infrastructure services covering financing, planning, design, construction, maintenance and support.

It has a number of contracts across Yorkshire, including a recent £34m deal to build a waste treatment plant for Rotherham, Barnsley and Doncaster councils.

The facility will treat up to 265,000 tonnes of household and business waste each year.