CONSTRUCTION firm Balfour Beatty is on target to meet its 2010 performance targets, the company said in a trading update yesterday.
Balfour said that both its cash reserves and order book were in a strong position, with average cash in the second half of 2010 up to £400m from £342m the year before.
The company’s year-end results will include figures from professional services for the first time, following its acquisition of infrastructure management firm Parsons Brinckerhoff in October 2009. The new sector is expected to exceed predictions despite ongoing delays to projects that are dependent on the reauthorisation of the Highways Bill in the US.
Despite “no discernable recovery” in weakened parts of the UK’s construction industry, Balfour Beatty said its construction services division continued to perform well, citing good operational performance and tight cost control as contributing factors. Revenues were affected in the support services sector, but the company was optimistic that new tenders won would help a return to expected numbers soon.