The Group said that overall trading remains in line with expectations, further to the Interim Management Statement of 10 November 2011.
Despite the contraction in the UK, Balfour Beatty said that its order book remained stable over the year despite weak market conditions in some of its core markets at a level in excess of £15 billion. During the year, Support Services and US Construction order books increased.
In December 2011 the Group sold its 25.5% interest in Barking Power Limited, we sold the asset to the Balfour Beatty Pension Fund at book value of £55 million by way of a £55 million additional contribution to the pension fund, reducing the pension deficit and enabling the fund to make the purchase.
Average net cash for the year was approximately £200 million reflecting investments completed during the year and cyclical unwind of working capital. Year-end net cash was at a similar level to that at the half-year.
Balfour Beatty said it was continuing to manage the business on the basis that conditions in its core markets would remain difficult. It was however positioning the Group to take advantage of the positive medium and long-term prospects for infrastructure markets.
This morning’s statement comes ahead of its results for the year ended 31 December 2011 which will be announced on 8 March 2012.