Balfour on track despite construction slowdown

Balfour Beatty, active on construction and civil engineering projects across the North West, said its order book has remained stable over the year despite a drop in UK construction work.

In a update for the year to December 31 the group said its order book was worth "in excess of £15bn" and trading was in line with expectations.

"During the year, support services and US construction order books increased while the UK construction order book contracted."

The group added: "We continue to manage the business on the basis that conditions in our core markets will remain difficult while positioning the group to take advantage of the positive medium and long-term prospects for infrastructure markets."

Average net cash for the year was around £200m reflecting investments completed during the year and the cyclical unwind of working capital.

Balfour also said it sold its 25% interest in Barking Power Station in Essex last month to the Balfour Beatty Pension Fund at its book value of £55m. Balfour funded the deal as a way of reducing its pension deficit.

Full year results will be announced on March 8.