Interim Management Statement

RNS Number : 3491H

Balfour Beatty PLC

04 November 2008

4 November 2008

INTERIM MANAGEMENT STATEMENT

Balfour Beatty, the international engineering, construction, services and investment Group issues this interim management statement covering the period 29 June to 3 November 2008 today.

Trading and cash generation has continued to be strong since the half-year in line with previously announced expectations, based on our pre-eminent position in infrastructure markets which provide secure long-term income streams. The confirmed order book has increased further in the period with the Group's major markets continuing to provide significant new business opportunity.

In the Building sector, good overall progress continued despite some signs of slowing expenditure in parts of the developer market, which constitutes only a minority of our activities in the sector. Barnhart, the construction and construction management company acquired in June in the US, is performing in line with expectations with a strong order intake of over $200 million secured since the acquisition.

In Engineering, the first-half year's strong progress has continued with particularly good performances in Balfour Beatty Utilities and UK civil engineering; Dubai, where our share of 2008 revenues from our joint venture will exceed £350 million; and our fast-growing professional and technical services business, Balfour Beatty Management, which delivered a further key milestone on the highly complex King's Cross underground station development on time and budget during the period.

In the Rail sector, performance has been steady with good project performance and major new opportunities, particularly in the UK, the US and South-East Asia under development. The integration of Schreck-Mieves in Germany, acquired in July, is proceeding to plan.

In Investments, Balfour Beatty Communities in the US is contributing in line with expectations and it has been a strong period for Barking Power. Our PPP business continues to perform satisfactorily and we see considerable further opportunity particularly in the UK education sector. Our PPP projects at preferred bidder stage remain on track although current circumstances in the financial sector will impact the timing of their financial close.