Interim Results
Balfour Beatty PLC
15 August 2007
BALFOUR BEATTY PLC
INTERIM RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2007
Financial Summary
2007 2006
first half first half
Revenue including joint ventures and associates £3,505m £2,719m
Pre-tax (loss)/profit from continuing operations
- before exceptional items and amortisation £76m £56m
- after exceptional items and amortisation £(52)m £35m
Profit attributable to equity shareholders £60m £28m
Earnings per share
- adjusted* 14.2p 11.4p
- basic 14.0p 6.5p
Interim dividend per share 4.6p 3.9p
Financing
- net cash before PFI/PPP subsidiaries (non-recourse) £479m £353m
- net borrowings of PFI/PPP subsidiaries (non-recourse) £(27)m £(17)m
* before exceptional items and amortisation of intangible assets, and, in the
case of earnings per share, including the pre-exceptional results of
discontinued operations
Highlights
- Pre-tax profit* up by 36% at £76 million
- Cash generated from operations up 36% at £181 million
- Adjusted earnings per share* up 25% to 14.2p
- Interim dividend increased by 18% to 4.6p
- Order book at record £10.6 billion
- £1 million net exceptional gain, after £103 million Metronet post-tax
write-off
- Acquisition of Centex Construction establishes critical mass in the US
- Niche acquisitions strengthen core businesses
- Financial close reached for new PPP concessions to a value of £350 million
'It is pleasing to report a first half year of particularly strong profit and
earnings growth, coupled with a further significant strengthening of our cash
position and growth in our order book.
'With our workloads continuing to increase, projects progressing well and a full
six months' contribution from Balfour Beatty Construction US, we anticipate
further good progress in the second half of the year.'
Sir David John, Chairman Ian Tyler, Chief Executive
15 August 2007
BALFOUR BEATTY PLC
INTERIM RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2007
OVERVIEW
It is pleasing to report a first half year of particularly strong profit and
earnings growth, coupled with a further significant strengthening of our cash
position and growth in our order book.
We have also substantially enhanced the future earnings growth potential of the
business with the acquisitions of Centex Construction in the US (now Balfour
Beatty Construction US), Exeter International Airport and a number of other
small but important niche acquisitions.
We remain committed to the delivery of the reliable, responsible growth that our
shareholders have enjoyed over recent years. We are clear about our priorities
for the continued development of the business in both the medium and the long
term and have the proven management capability to deliver.
FIRST HALF YEAR RESULTS
Balfour Beatty's pre-tax profits* from continuing operations for the six months
to 30 June 2007 were up 36% at £76 million (2006: £56 million). Adjusted
earnings per share* were up by 25% to 14.2p (2006: 11.4p).
This reflects strong performances in all sectors, including a first quarter's
contribution from Balfour Beatty Construction US in line with our expectations.
Operating cash performance was again strong in the period and period-end net
cash, further enhanced by certain one-off inflows, stood at £479 million (2006:
£353 million), before taking account of the consolidation of £27 million (2006:
£17 million) of non-recourse net debt in our wholly-owned PPP street lighting
concessions.
The Board has declared an interim dividend up 18% at 4.6p per ordinary share
(2006: 3.9p).
There was a net exceptional credit, after tax, of £1 million (2006: £21 million
charge). This reflects a post-tax charge of £103 million in respect of the
write-off of our investment in Metronet and an estimate of other consequential
write-offs, which was more than offset by credits arising from the sale of our
24.5% interest in Devonport Management Limited (£57 million) and the
crystallisation of tax benefits in the US following the acquisition of Centex
Construction in late March (£50 million).
Profit for the period attributable to equity shareholders, including profit from
discontinued operations, was £60 million (2006: £28 million) and basic earnings
per share were 14.0p (2006: 6.5p).
The period-end order book stood at £10.6 billion, up by 20% since 1 July 2006
and by 16% since the year-end.
Revenue, including the Group's share of joint ventures and associates, at
£3,505 million (2006: £2,719 million) was up by 29%.
* before exceptional items and amortisation of intangible assets, and, in the
case of earnings per share, including the pre-exceptional results of
discontinued operations
THE FIRST HALF IN BRIEF
Acquisitions and Disposals
Good progress was made in pursuing the Group's medium-term growth strategy which
centres on the expansion of its privately financed project business in the UK
and overseas, further expansion of its UK professional and technical services
business and the broadening of its regional contracting base in the UK. The
longer-term objective of creating substantial domestic businesses in selected
markets outside the UK, particularly the US, was also progressed.
On 30 March, we completed the acquisition of Centex Construction (which has
subsequently been renamed Balfour Beatty Construction US) for a cash
consideration, including costs, of $377 million ($126 million, net of cash
acquired). This acquisition of a high-quality, top-tier US building company,
well placed in a number of growth markets, with annual sales in excess of $2
billion and with highly compatible management processes and culture, is a major
step forward in our long-term strategy of building a major domestic
construction, services and investment presence in the US on our UK model. The
acquisition provides significant and immediate earnings enhancement, strong
market presence and substantial potential to exploit new growth opportunities in
conjunction with our established US businesses.
The acquisition of Exeter International Airport for £60 million was completed in
January, through our specialist company, Regional & City Airports. This
constitutes a first step in our strategy of investing in non-PPP infrastructure
assets in the UK. Exeter International is one of the UK's fastest-growing
regional airports, with passenger numbers forecast to double by 2016.
Subsequently, 40% of the £30 million equity invested in this asset has been sold
to Galaxy, the international transportation equity investment fund, for £12
million. We have significant expertise in the design and construction of airport
assets and are currently developing a master plan for the long-term development
of the airport.
Other, smaller acquisitions were completed in the first half year in Swedish
rail and professional and technical services in the UK and the US. Since the end
of the period, further acquisitions have been made in rail, professional and
technical services and UK road management and maintenance. The aggregate cost of
these acquisitions was approximately £17 million. These transactions add to our
earning power in markets where we are already strong.
On 28 June, we completed the sale of our 24.5% interest in Devonport Management
Ltd (DML) for a cash consideration of £86 million. Long-term involvement in DML
was not core to our strategy and the sale represented excellent value to our
shareholders.
Order Book
During the first half of the year, the order book has grown by £1.5 billion to
£10.6 billion, largely as a result of the consolidation of the order book of
Balfour Beatty Construction US. The underlying order book also continued to
grow. Notable additions to the order book arose from the Eastern Electricity
Alliance contract with National Grid, substantial works for Grosvenor Estates in
Liverpool and some major wins for our civil engineering and programme management
businesses in the US.
The Board
Jim Cohen, an executive Director since 2000, retired from the Board on 18
February 2007. He took lead responsibility for the development of both our UK
PPP business and our international rail operations and left with the Board's
sincere gratitude and best wishes.
BUSINESS SECTORS
Building, Building Management and Services
Profit from operations in the building sector before exceptional items and
amortisation rose by 76% to £30 million (2006: £17 million) during the first
half of the year. This reflected a 47% increase in the underlying profits of the
existing businesses, augmented by a first quarter's contribution from Balfour
Beatty Construction US in line with our expectations.
The UK-based construction businesses performed strongly. Balfour Beatty
Construction made good progress on a range of major projects, including major
schools schemes in Bassetlaw, North Lanarkshire, Birmingham and Manchester, and
on the £550 million New Birmingham Hospital project. Mansell also made progress
in strong markets for regional construction and social housing. Heery in the US,
augmented by recent acquisitions, performed well and in June was awarded the
$230 million contract to design and build a new Federal Correctional Institution
at Berlin, New Hampshire. Haden Building Management in the UK, now fully
mobilised for its major new contracts for the Department for Work and Pensions
and the Metropolitan Police, also performed well.
The sector order book increased to £5.1 billion during the period, including
£1.2 billion arising on the acquisition of Balfour Beatty Construction US. With
activity levels continuing to expand and a full six-month contribution from
Balfour Beatty Construction US, we expect significant further growth in the
second half of the year.
Civil and Specialist Engineering and Services
Profit from continuing operations in the engineering sector before exceptional
items and amortisation rose by 30% to £26 million (2006: £20 million) in the
period. This represented a strong all-round performance, with particularly
notable improvements in Gammon in Hong Kong and in Balfour Beatty Infrastructure
Inc (previously Balfour Beatty Construction Inc) in the US and continuing growth
in the contribution from Balfour Beatty Management.
In March, Balfour Beatty Power Networks, which also performed strongly, was
awarded the £550 million five-year contract to upgrade and develop the
electricity transmission network in the eastern half of England, working in
conjunction with Balfour Beatty Management. There is an option to extend the
contract for a further five years. Other major contracts were secured in the
engineering sector in street lighting, US infrastructure and for Yorkshire
Water.
Following the sale of our interest in Devonport Management Ltd at the end of
June, operating profits in that business are accounted for under discontinued
businesses.
At the end of June, the sector order book stood at £4.65 billion. It is
anticipated that progress will accelerate significantly in the second half of
the year.
Rail Engineering and Services
Profit from operations in the rail sector before exceptional items increased by
18% to £13 million (2006: £11 million) during the period. Performance in the UK
rail businesses improved, with high levels of activity in overground renewals
for Network Rail and underground and sub-surface trackwork on the London
Underground system. The highly-complex project at Heathrow Terminal 5 made
excellent progress and reached its final stages during the period.
Performance in Balfour Beatty Rail Power Systems, the international
electrification and power supply business, was in line with the first half of
last year as were results in Balfour Beatty Rail Inc in the US. Projects in
Germany, Italy, the US and other markets generally progressed well. In May, our
Italian business was awarded the contract for the design, construction and
maintenance of the new LRV (Trolleybus) system connecting Pescara and
Montesilvano in the centre of Italy.
The acquisition of a multi-disciplinary rail business and SAAB's signalling
operations, to augment our established position in Sweden, has created the
leading privately-owned rail infrastructure contractor in the Nordic region.
The order book stood at £0.85 billion at the end of the period. In July, the UK
government published its 30-year rail strategy White Paper with the welcome news
that some £10 billion is to be invested in network capacity enhancement between
2009 and 2014, including major projects for Thameslink and Birmingham and
Reading stations.
We expect to see continuing good progress in the second half of the year.
Investments and Developments
Profit from operations before exceptional items in the investments sector
improved by 13% to £17 million (2006: £15 million), despite the planned increase
in bid investment and costs in the UK and elsewhere. Barking Power had a
particularly strong half year with excellent reliability and availability and
other concessions performed at anticipated levels.
Early in the year, the acquisition of Exeter International Airport was completed
for £60 million, with 40% of the £30 million equity invested being subsequently
sold to Galaxy, the infrastructure investment fund. During the period, the £311
million Pinderfields and Pontefract Hospital project and the £36 million Derby
Street Lighting project reached financial close.
On 18 July, the Metronet concessions for the London Underground PPP, in which we
had a 20% interest, went into PPP Administration. The costs to the Group have
been accounted as exceptional and are further described below. The London
Underground PPP is unique and we do not anticipate any negative impact on the UK
PPP market as a whole to arise as a result of Metronet's Administration.
Balfour Beatty is working closely with Metronet, London Underground and the
Administrator in order to ensure that the daily operations of the network remain
unaffected over the period of Metronet's Administration. The Group remains
committed to the creation of a world-class underground system for London and
will continue to provide such services to London Underground as required and
requested under the new ownership structure which succeeds Metronet.
Two major new preferred bidder positions were secured during the first half of
the year. In January, Consort Healthcare was appointed preferred bidder for the
30-year, £152 million Fife General Hospital and Maternity Services PPP for NHS
Fife. In May, Transform Schools was appointed preferred bidder for the
£140 million Islington Building Schools for the Future programme. In both cases,
all construction and long-term services will be provided by Balfour Beatty
subsidiary companies.
We now have five major projects at preferred bidder stage and are well advanced
in bidding for a further eight, including the £1.5 billion M25 widening scheme.
The development of our PPP businesses in the US, South-East Asia and Germany
made good progress during the first half. We have been short listed for the
Oakland Connector rail project in California, the North Tarrant Expressway
project in Texas, the Institute of Technical Education in Singapore and Bremen
Hospital in Germany.
The UK PPP market remains strong, with major opportunities continuing to arise
in transportation, healthcare and particularly education through the Building
Schools for the Future initiative which is now gaining momentum. PPP procurement
also continues to gather pace in the US, South-East Asia and western Europe.
In the second half of the year there will be a further acceleration in bid costs
as activity intensifies on the later stages of some major bids and we continue
to expand our activities in the US, Hong Kong and Germany. As a result, as
previously anticipated, we do not expect performance in this sector for the full
year to match that of the previous year.
EXCEPTIONAL ITEMS
There are a number of exceptional items in the first half year accounts,
resulting in a net exceptional credit of £1 million.
On 18 July, the directors of Metronet Rail BCV Ltd and Metronet Rail SSL Ltd,
the PPP concession companies in which Balfour Beatty had a 20% interest and
which were responsible for the upgrade of two-thirds of London Underground's
rail system, asked the Mayor of London to seek the appointment of a PPP
Administrator.
In its June trading update, Balfour Beatty indicated its intention to write-off
approximately £100 million, representing the equity invested in the Metronet
concessions, the profits recognised in respect of these investments in prior
years and certain other, related issues. Following the entry of the concessions
into PPP Administration and pending final agreement with the Administrator in
respect of the recovery of certain day-to-day trading balances between Balfour
Beatty operating and affiliate companies and Metronet, a total post-tax
exceptional charge of £103 million has been recorded in the half-year accounts.
This comprises a net investment write-off of £87 million, estimated contract
provisions of £35 million, and related tax credits of £19 million.
A further £3 million charge arises from some reorganisation costs in the US and
the premium on the buy-back of preference shares.
These charges are very largely offset by two exceptional credits. There is a
£57 million exceptional profit arising from the disposal of our 24.5% interest
in Devonport Management Ltd. In addition, consequent to the acquisition of
Centex Construction, the crystallisation of the benefits of tax losses and other
tax assets in the US, which have to be recognised in full under IAS 12, has
resulted in an exceptional gain of £50 million.
OUTLOOK
With our workloads continuing to increase, projects progressing well and a full
six months' contribution from Balfour Beatty Construction US, we anticipate
further good progress in the second half of the year.
ENDS
Enquiries to:- Ian Tyler, Chief Executive
Anthony Rabin, Finance Director
Tim Sharp, Director of Corporate Communications
Tel: 020 7216 6800
www.balfourbeatty.com
* * * * * * * *
Balfour Beatty is a world-class engineering, construction, services and
investment business, well positioned in infrastructure markets which offer
significant long-term growth. We work in partnership with sophisticated
customers who value the highest levels of quality, safety and technical
expertise. Our skills are applied in appropriate combination to meet individual
customer needs. Balfour Beatty's financial position, with significant net cash
and with strong operating cash flows, offers continuing flexibility to add
additional capacity and expertise to the business mix and to make appropriate
investments in PPP and other long-term growth opportunities.
* * * * * * * *
High resolution photographs are available to the media free of charge at
www.newscast.co.uk (tel +44 (0)20 7608 1000).
A presentation to analysts and investors will be made at JPMorgan Cazenove, 20
Moorgate, EC2 at 9.45 am.
There will be a live webcast of this presentation on www.balfourbeatty.com and
the slides presented will be available on the website from 9.45 am.
* * * * * * * *
The Interim Report for the half-year ended 30 June 2007 together with the
Independent Review Report of Deloitte & Touche LLP will be posted on 20 August
2007 to holders of ordinary shares and preference shares. Copies will also be
available for members of the public at the Company's registered office at 130
Wilton Road, London, SW1V 1LQ and the report can be viewed on the Company's
website at www.balfourbeatty.com.
The interim 2007 dividend of 4.6p net per ordinary share will be paid on
12 December 2007 to holders of these shares on the register on 26 October 2007
by direct credit or, where no mandate has been given, by cheque posted on
10 December 2007 payable on 12 December 2007. The ordinary shares will be quoted
ex-dividend on 24 October 2007.
A preference dividend of 5.375p gross (4.8375p net at current tax rate) per
cumulative convertible redeemable preference share will be paid in respect of
the six months ending 31 December 2007 on 1 January 2008 to holders of these
shares on the register on 23 November 2007 by direct credit or, where no mandate
has been given, by cheque posted on 28 December 2007 payable on 1 January 2008.
The preference shares will be quoted ex-dividend on 21 November 2007.
* * * * * * * *
Group income statement
For the half-year ended 30 June 2007 based on unaudited figures
2007 2006 2006
first half first half year
Before Exceptional Before Exceptional Before Exceptional
exceptional items* exceptional items* exceptional items*
items* (Note 6) Total items* (Note 6) Total items* (Note 6) Total
Notes £m £m £m £m £m £m £m £m £m
Continuing
operations
Revenue
including
share of
joint ventures
and
associates 3,505 - 3,505 2,719 - 2,719 5,741 - 5,741
Share of
revenue
of joint
ventures
and
associates 3 (642) - (642) (665) - (665) (1,254) - (1,254)
Group revenue 2,863 - 2,863 2,054 - 2,054 4,487 - 4,487
Cost of sales (2,655) (35) (2,690) (1,900) - (1,900) (4,121) - (4,121)
Gross profit 208 (35) 173 154 - 154 366 - 366
Net operating
expenses
- amortisation of
intangible assets - (3) (3) - - - - (1) (1)
- other (169) (89) (258) (129) (15) (144) (286) (19) (305)
Group operating
(loss)/profit 39 (127) (88) 25 (15) 10 80 (20) 60
Share of results
of joint ventures
and associates 3 34 - 34 27 - 27 56 - 56
(Loss)/profit
from operations 73 (127) (54) 52 (15) 37 136 (20) 116
Investment income 4 13 - 13 12 - 12 26 - 26
Finance costs 5 (10) (1) (11) (8) (6) (14) (18) (7) (25)
(Loss)/profit
before taxation 76 (128) (52) 56 (21) 35 144 (27) 117
Taxation 7 (17) 70 53 (11) - (11) (35) 1 (34)
Profit for the
period from
continuing
operations 59 (58) 1 45 (21) 24 109 (26) 83
Profit for the
period from
discontinued
operations 8 2 57 59 4 - 4 8 - 8
Profit for the
period
attributable to
equity
shareholders 61 (1) 60 49 (21) 28 117 (26) 91
* and amortisation of intangible assets
2007 2006 2006
first half first half year
pence pence pence
Basic earnings
per ordinary
share
- continuing
operations 9 0.3 5.6 19.3
- discontinued
operations 9 13.7 0.9 1.9
14.0 6.5 21.2
Diluted earnings
per ordinary
share
- continuing
operations 9 0.3 5.6 19.1
- discontinued
operations 9 13.6 0.9 1.9
13.9 6.5 21.0
Dividends per
ordinary share
proposed for the
period 10 4.6 3.9 9.1
Group statement of recognised income and expense
For the half-year ended 30 June 2007 based on unaudited figures
2007 2006 2006
first half first half year
Notes £m £m £m
Actuarial gains on retirement benefit
obligations 126 46 36
PFI/PPP cash flow hedges - net fair value gains 39 25 32
- reclassified and
reported in net profit 7 - -
PFI/PPP financial assets - fair value revaluation (36) (28) (2)
- reclassified and
reported in net profit (3) - -
Changes in fair value of net investment hedges 5 7 14
Currency translation differences (7) (7) (17)
Tax on items taken directly to equity (43) (15) (26)
Net income recognised directly in equity 88 28 37
Profit for the period from continuing operations 1 24 83
Profit for the period from discontinued operations 59 4 8
Total recognised income for the period
attributable to equity shareholders 14 148 56 128
Group balance sheet
At 30 June 2007 based on unaudited figures
2007 2006 2006
first half first half year
Notes £m £m £m
Non-current assets
Intangible assets - goodwill 603 292 427
- other 44 - 9
Property, plant and equipment 199 170 183
Investments in joint ventures and associates 3 356 400 458
Investments 46 47 46
PFI/PPP financial assets 28 20 22
Deferred tax assets 92 67 102
Derivative financial instruments 8 1 2
Trade and other receivables 42 35 50
1,418 1,032 1,299
Current assets
Inventories 92 75 75
Due from customers for contract work 349 263 252
Derivative financial instruments 3 5 3
Trade and other receivables 828 614 626
Current tax assets 10 - -
Cash and cash equivalents 481 381 323
1,763 1,338 1,279
Total assets 3,181 2,370 2,578
Current liabilities
Trade and other payables (1,798) (1,182) (1,289)
Due to customers for contract work (365) (274) (265)
Derivative financial instruments - - (1)
Current tax liabilities (8) (32) (28)
Borrowings (1) (28) (17)
(2,172) (1,516) (1,600)
Non-current liabilities
Trade and other payables (97) (68) (77)
Borrowings - PFI/PPP non-recourse
term loans (27) (17) (21)
- other (1) - (1)
Deferred tax liabilities (5) (4) (5)
Liability component of preference shares (88) (90) (90)
Retirement benefit obligations 12 (160) (237) (288)
Provisions (118) (112) (109)
(496) (528) (591)
Total liabilities (2,668) (2,044) (2,191)
Net assets 513 326 387
Equity
Called-up share capital 14 216 214 215
Share premium account 14 46 40 43
Equity component of preference shares 14 16 16 16
Special reserve 14 167 172 169
Share of joint ventures' and associates'
reserves 14 167 199 243
Other reserves 14 3 10 5
Accumulated losses 14 (102) (325) (304)
Total equity 513 326 387
Group cash flow statement
For the half-year ended 30 June 2007 based on unaudited figures
2007 2006 2006
first half first half year
Notes £m £m £m
Cash flows from operating activities
Cash generated from operations 16.1 181 133 217
Income taxes paid (10) (9) (24)
Net cash from operating activities 171 124 193
Cash flows from investing activities
Dividends received from joint ventures and
associates 76 7 24
Interest received 13 14 29
Acquisition of businesses, net of cash and
cash equivalents acquired (95) (21) (80)
Purchase of property, plant and equipment (39) (28) (57)
Purchase of investments - (10) (8)
Investment in and loans made to joint ventures
and associates (33) (8) (22)
Investment in financial assets (7) (4) (12)
Disposal of businesses, net of cash and cash
equivalents disposed 92 - -
Disposal of property, plant and equipment 7 6 9
Net cash from/(used in) investing activities 14 (44) (117)
Cash flows from financing activities
Proceeds from issue of ordinary shares 2 3 6
Purchase of ordinary shares (4) (4) (3)
Proceeds from new loans 6 30 35
Repayment of loans (1) - (27)
Finance lease principal repayments - (1) (1)
Buy-back of preference shares (3) (17) (19)
Ordinary dividends paid - (15) (52)
Interest paid (7) (2) (5)
Preference dividends paid (6) (6) (12)
Net cash used in financing activities (13) (12) (78)
Net increase/(decrease) in cash and cash
equivalents 172 68 (2)
Effects of exchange rate changes 1 (3) (6)
Cash and cash equivalents at beginning of period 308 316 316
Cash and cash equivalents at end of period 16.2 481 381 308
Notes
1 Basis of presentation
The interim financial statements have been prepared on the basis of the
accounting policies set out in the 2006 Balfour Beatty plc Annual Report
and Accounts.
The unaudited results for the half-year ended 30 June 2007 were approved by
the Board on 14 August 2007. The full year figures for 2006 included in
this report do not constitute statutory accounts for the purposes of
Section 240 of the Companies Act 1985. A copy of the Company's statutory
accounts for the year ended 31 December 2006 has been delivered to the
Registrar of Companies. The independent auditors' report on those accounts
was unqualified and did not contain any statement under Section 237(2) or
(3) of the Companies Act 1985.
2 Segment analysis - continuing operations
For the half-year ended 30 June 2007
Performance by activity: Building, Civil and
building specialist Rail
management engineering engineering Investments
and and and and Corporate
services services services developments costs Total
£m £m £m £m £m £m
Group revenue 1,509 1,004 341 9 - 2,863
Group operating profit 30 20 12 (10) (13) 39
Share of results of joint ventures and
associates - 6 1 27 - 34
Profit from operations before exceptional
items and amortisation 30 26 13 17 (13) 73
Exceptional items (25) (11) (1) (87) - (124)
Amortisation of intangible assets (2) (1) - - - (3)
Loss from operations 3 14 12 (70) (13) (54)
Investment income 13
Finance costs (11)
Loss before taxation (52)
Performance by geographic origin: North
Europe America Other* Total
£m £m £m £m
Group revenue 2,290 559 14 2,863
Profit from operations before exceptional items
and amortisation 65 - 8 73
Exceptional items (122) (2) - (124)
Amortisation of intangible assets (1) (2) - (3)
Loss from operations (58) (4) 8 (54)
For the half-year ended 1 July 2006
Performance by activity: Building, Civil and
building specialist Rail
management engineering engineering Investments
and and and and Corporate
services services services developments costs Total
£m £m £m £m £m £m
Group revenue 955 717 376 6 - 2,054
Group operating profit 16 17 11 (8) (11) 25
Share of results of joint ventures and
associates 1 3 - 23 - 27
Profit from operations before exceptional
items 17 20 11 15 (11) 52
Exceptional items - (17) 2 - - (15)
Profit from operations 17 3 13 15 (11) 37
Investment income 12
Finance costs (14)
Profit before taxation 35
Performance by geographic origin: North
Europe America Other* Total
£m £m £m £m
Group revenue 1,756 283 15 2,054
Profit from operations before exceptional
items 57 (9) 4 52
Exceptional items 2 (17) - (15)
Profit from operations 59 (26) 4 37
* Other principally comprises the Group's operations in Hong Kong and Dubai.
For the year ended 31 December 2006
Performance by activity: Building, Civil and
building specialist Rail
management engineering engineering Investments
and and and and Corporate
services services services developments costs Total
£m £m £m £m £m £m
Group revenue 2,030 1,677 766 14 - 4,487
Group operating profit 42 46 35 (19) (24) 80
Share of results of joint ventures and
associates 1 1 3 51 - 56
Profit from operations before exceptional
items and amortisation 43 47 38 32 (24) 136
Exceptional items - (21) 2 - - (19)
Amortisation of intangible assets - (1) - - - (1)
Profit from operations 43 25 40 32 (24) 116
Investment income 26
Finance costs (25)
Profit before taxation 117
Performance by geographic origin: North
Europe America Other* Total
£m £m £m £m
Group revenue 3,893 572 22 4,487
Profit from operations before exceptional items and amortisation 133 (12) 15 136
Exceptional items (1) (18) - (19)
Amortisation of intangible assets (1) - - (1)
Profit from operations 131 (30) 15 116
3 Share of results and net assets of joint ventures and associates
2007 2006 2006
first first year
half half
£m £m £m
Income statement - continuing operations
Share of revenue of joint ventures and associates 642 665 1,254
Operating profit before exceptional items 25 20 43
Investment income 66 60 127
Finance costs (49) (43) (89)
Taxation (8) (10) (25)
Share of results of joint ventures and associates before
exceptional items 34 27 56
Balance sheet
Property, plant and equipment 157 200 197
PFI/PPP financial assets 1,277 1,369 1,541
Net cash/(borrowings) - PFI/PPP non-recourse (1,278) (1,186) (1,260)
- other 73 83 88
Other net assets/(liabilities) 127 (66) (108)
Share of net assets of joint ventures and associates 356 400 458
4 Investment income
2007 2006 2006
first first year
half half
£m £m £m
PFI/PPP interest on financial assets 1 1 1
PFI/PPP subordinated debt interest receivable 4 3 8
Other interest receivable and similar income 8 8 17
13 12 26
5 Finance costs
2007 2006 2006
first first year
half half
£m £m £m
PFI/PPP non-recourse - other interest payable 1 1 1
Other interest payable - bank loans and overdrafts 1 - 3
- other 2 1 2
Preference shares - finance cost 6 6 12
10 8 18
Exceptional items - premium on buy-back of preference shares 1 6 7
11 14 25
A preference dividend of 5.375p gross (4.8375p net) per cumulative
convertible redeemable preference share of 1p was paid in respect of the
six months ended 30 June 2007 on 1 July 2007 to holders of these shares on
the register on 1 June 2007. A preference dividend of 5.375p gross
(4.8375p net at current tax rate) per cumulative convertible redeemable
preference share will be paid in respect of the six months ending
31 December 2007 on 1 January 2008 to holders of these shares on the
register on 23 November 2007 by direct credit or, where no mandate has
been given, by cheque posted on 28 December 2007 payable on 1 January 2008.
These shares will be quoted ex-dividend on 21 November 2007.
6 Exceptional items and amortisation of intangible assets
2007 2006 2006
first half first half year
Metronet Other Total
£m £m £m £m £m
6.1 (Charged against)/credited to (loss)/profit from
operations
Cost of sales - Metronet - contract losses (35) - (35) - -
Net operating expenses - Metronet - impairment of
investment (87) - (87) - -
- North America integration and
reorganisation costs - (2) (2) - (2)
- National Engineering and
Contracting Company - impairment
of goodwill - - - (17) (16)
- litigation settlements and fines - - - 2 2
- Birse Group integration costs - - - - (3)
(122) (2) (124) (15) (19)
6.2 Charged to finance costs
- premium on buy-back of preference
shares - (1) (1) (6) (7)
Charged against (loss)/profit before taxation (122) (3) (125) (21) (26)
6.3 Credited to taxation
- tax on items above 19 - 19 - 1
- recognition of US deferred tax
assets - 50 50 - -
Charged against profit for the period from
continuing operations (103) 47 (56) (21) (25)
6.4 Credited to profit for the period from discontinued
operations
- profit on sale of operations - 57 57 - -
Exceptional items credited to/(charged against)
profit for the period (103) 104 1 (21) (25)
Amortisation of intangible assets - (3) (3) - (1)
Tax thereon - 1 1 - -
(103) 102 (1) (21) (26)
6.1 In 2007 first half, as a result of the request by Metronet Rail BCV Ltd to
the Arbiter for an Extraordinary Review of the incurred and forecast costs,
his subsequent interim award, and the consequent appointment to both
Metronet Rail BCV Ltd and Metronet Rail SSL Ltd (collectively 'Metronet')
of a PPP Administrator, the Group's investment in the Metronet concessions,
including profits recognised in previous periods, has been written down to
£nil. In addition, provision has been made for an estimate of the costs
resulting from the administration of Metronet, including the impact on its
contract with Trans4m Ltd, in which the Group owns 25% of the ordinary
share capital and with which certain Group subsidiaries contract, and other
direct contracts with Group subsidiaries. These costs include, where
relevant, provision for winding down contracts, outstanding receivables and
settlement of other trading items. In the US, costs of £1m incurred in the
reorganisation and integration of Balfour Beatty Construction (formerly
Centex Construction) acquired in the period have been charged against Group
operating (loss)/profit, together with further costs of £1m (2006: first
half £nil, full year £2m) arising on the reorganisation of the central
division of Balfour Beatty Infrastructure Inc (formerly Balfour Beatty
Construction Inc).
In 2006, as a result of unsatisfactory performance in the central division
of Balfour Beatty Infrastructure Inc, the goodwill arising on the
acquisition of National Engineering and Contracting Company was written off
and charged against Group operating profit (first half £17m, full year
£16m). The exceptional item credited to Group operating profit in 2006
(first half £2m, full year £2m) arose from the reduction in the fine (less
associated costs) imposed on Balfour Beatty Rail Infrastructure Services Ltd
in respect of the Hatfield derailment in October 2000. Costs incurred
in the reorganisation and integration of Birse Group acquired in 2006
(first half £nil, full year £3m) were charged against Group operating
profit.
6.2 The exceptional items charged against finance charges are the premium of
£1m (2006: first half £6m, full year £7m) arising on the repurchase for
cancellation of 2.1m (2006: first half 10.8m, full year 12.0m) preference
shares at a cost of £3m (2006: first half £17m, full year £19m).
6.3 The exceptional items charged against (loss)/profit from operations have
given rise to a net tax credit of £19m (2006: first half £nil, full year
£1m). Consequent to the acquisition of Balfour Beatty Construction
(formerly Centex Construction), the benefits of tax losses and other tax
assets arising from temporary differences in the US have crystallised and
have been recognised in full in accordance with IAS 12, giving rise to an
exceptional gain of £50m in the 2007 first half.
6.4 Approval of the sale of the Group's 24.5% interest in its associate,
Devonport Management Ltd, was obtained from the Ministry of Defence on
26 June 2007, at which time this investment became held for sale. On
28 June 2007, the Group completed the sale of this investment for a total
cash consideration of £86m, resulting in a gain on disposal of £57m, which
has been credited to profit from discontinued operations. The carrying
value of the investment at the date of sale was £27m. Costs associated with
the disposal amounted to £2m.
7 Taxation
2007 2006 2006
first half first half year
£m £m £m
UK current tax 6 6 16
Foreign current tax 5 3 7
Deferred tax 6 2 12
17 11 35
Exceptional items and amortisation of intangible assets (70) - (1)
Total tax (credit)/charge (53) 11 34
The Group tax charge above does not include any amounts for joint ventures
and associates, whose results are disclosed in the income statement net of
tax (see Note 3).
In addition to the Group tax charge above is £43m (2006: first half £15m,
full year £26m) of tax charged directly to equity, comprised of current tax
of £2m (2006: first half £2m, full year £8m), deferred tax of £43m (2006:
first half £14m, full year £7m) and a credit in respect of joint ventures
and associates of £2m (2006: first half £1m credit, full year £11m charge).
Corporation tax for the period is charged at 40% (2006: first half 39%,
full year 39%), representing the best estimate of the weighted average
annual applicable tax rates expected for the full financial year applied to
the first half profits, based on profit before taxation, exceptional items
and amortisation of intangible assets, excluding the results of joint
ventures and associates.
8 Discontinued operations
The Group's 24.5% interest in Devonport Management Ltd ('DML'), sold on
28 June 2007 and previously included in Civil and specialist engineering
and services, has been classified as discontinued. The profit for the
period from discontinued operations includes the Group's share of the
post-tax results of and management fees from DML of £3m (2006: first half
£4m, full year £8m) and the profit on sale of the Group's interest in DML
of £57m, after charging taxation of £nil. In the first half 2007, DML
generated cash flows from investing activities of £2m (2006: first half
£nil, full year £nil), excluding net proceeds of sale.
On 5 January 2007, the Group acquired a 100% indirect interest in Exeter
and Devon Airport Ltd ('EDAL') with the intent of selling on a 40% equity
interest. Consequently, from 5 January 2007 to 4 April 2007, when the 40%
equity interest was sold, EDAL has been treated as an asset held for
resale, and its results (£1m loss) shown under discontinued operations.
In the first half 2007, Metronet Rail BCV Holdings Ltd and Metronet Rail
SSL Holdings Ltd recorded a result of £nil in share of results of joint
ventures and associates, together with an exceptional impairment charge of
£87m before taxation. In the Group's financial statements for the full year
2007, these will be included as discontinued operations, as a result of the
appointment of a PPP Administrator to the concession companies on 18 July
2007.
9 Earnings per ordinary share
2007 2006 2006
first half first half year
Basic Diluted Basic Diluted Basic Diluted
£m £m £m £m £m £m
Earnings
- continuing operations 1 1 24 24 83 83
- discontinued operations 59 59 4 4 8 8
60 60 28 28 91 91
Exceptional items (1) 21 25
Amortisation of intangible assets 2 - 1
Adjusted earnings 61 49 117
Comprising:
- continuing operations 59 45 109
- discontinued operations 2 4 8
61 49 117
m m m m m m
Weighted average number of ordinary
shares 429.1 432.2 426.2 430.9 427.1 431.0
pence pence pence pence pence pence
Earnings per ordinary share
- continuing operations 0.3 0.3 5.6 5.6 19.3 19.1
- discontinued operations 13.7 13.6 0.9 0.9 1.9 1.9
14.0 13.9 6.5 6.5 21.2 21.0
Exceptional items (0.2) 4.9 5.9
Amortisation of intangible assets 0.4 - 0.2
Adjusted earnings per ordinary share 14.2 11.4 27.3
Comprising:
- continuing operations 13.7 10.5 25.4
- discontinued operations 0.5 0.9 1.9
14.2 11.4 27.3
The calculation of basic earnings is based on profit for the period
attributable to equity shareholders. The weighted average number of
ordinary shares used to calculate diluted earnings per ordinary share has
been adjusted for the conversion of share options. No adjustment has been
made in respect of the potential conversion of the cumulative convertible
redeemable preference shares, the effect of which would have been
antidilutive throughout each period. Adjusted earnings per ordinary share,
before exceptional items and amortisation of intangible assets, and
including the pre-exceptional results of discontinued operations, has been
disclosed to give a clearer understanding of the Group's underlying trading
performance.
10 Dividends on ordinary shares
2007 2006 2006
first half first half year
Per share Amount Per share Amount Per share Amount
pence £m pence £m pence £m
Proposed dividends for the period:
Interim 2006 - - 3.9 17 3.9 17
Final 2006 - - - - 5.2 22
Interim 2007 4.6 20 - - - -
4.6 20 3.9 17 9.1 39
Recognised dividends for the period:
Final 2005 - 20 20
Interim 2006 - - 17
Final 2006 22 - -
22 20 37
The interim 2007 dividend will be paid on 12 December 2007 to holders of
ordinary shares on the register on 26 October 2007 by direct credit or,
where no mandate has been given, by cheque posted on 10 December 2007
payable on 12 December 2007. These shares will be quoted ex-dividend on
24 October 2007.
11 PFI/PPP subsidiaries
The Group has a 100% interest in three PFI/PPP concessions through its
shareholdings in Connect Roads Sunderland Holdings Ltd, Connect Roads South
Tyneside Holdings Ltd and Connect Roads Derby Holdings Ltd. The performance
of the wholly-owned PFI/PPP concessions and their balance sheets are
summarised below:
2007 2006 2006
first half first half year
£m £m £m
Income statement
Group revenue 8 6 14
Profit from operations - - -
Investment income 1 1 1
Finance costs (1) (1) (1)
Profit before taxation - - -
Taxation - - -
Profit for the period - - -
Cash flow
Profit from operations - - -
Decrease in working capital - - 1
Income taxes paid - - -
Net cash inflow from operating activities - - 1
Net cash outflow from investing activities (5) (3) (7)
Net cash outflow from financing activities (1) - (1)
Net cash outflow (6) (3) (7)
Net borrowings at beginning of period (21) (14) (14)
Net borrowings at end of period (27) (17) (21)
Balance sheet
PFI/PPP financial assets 28 20 22
Other net current assets 2 (1) (1)
Non-recourse term loans (27) (17) (21)
Net assets 3 2 -
12 Retirement benefit obligations
The following actuarial assumptions used in the IAS 19 valuations of the
Group's principal defined benefit pension schemes have been updated from
those used at 31 December 2006:
2007 2006 2006
first half first half year
% % %
Inflation rate 3.30 3.00 3.10
Discount rate 5.85 5.25 5.15
Future salary increases 4.80 4.50 4.60
Future pension increases 3.30 3.00 3.10
The movement in retirement benefit obligations for the period was £m £m £m
as follows:
At beginning of period (288) (280) (280)
Exchange adjustments - - 2
Service cost (26) (26) (52)
Interest cost (59) (51) (104)
Expected return on plan assets 66 58 117
Contributions from employer 21 18 36
Benefits paid - 1 2
Actuarial gains and losses - assets (35) (42) 21
- liabilities 161 87 5
Businesses acquired - (2) (35)
At end of period (160) (237) (288)
13 Share capital
During the half-year ended 30 June 2007, 58,191 ordinary shares were issued
following the exercise of savings-related share options and 858,837
ordinary shares were issued following the exercise of executive share
options for an aggregate cash consideration of £2m.
During the half-year ended 30 June 2007, 2,125,000 preference shares were
repurchased for cancellation by the Company for a total consideration of
£3,385,509 at an average price of 159.3p.
14 Movements in equity
For the half-year ended 30 June 2007
Share of
Equity joint
component ventures'
Called-up Share of and
share premium preference Special associates' Other Accumulated
capital account shares reserve reserves reserves losses Total
£m £m £m £m £m £m £m £m
At 1 January 2007 215 43 16 169 243 5 (304) 387
Net profit for the period - - - - 37 - 23 60
Actuarial gains on
retirement benefit obligations - - - - - - 126 126
PFI/PPP cash flow hedges
- net fair value gains - - - - 35 4 - 39
- reclassified and reported
in net profit - - - - 7 - - 7
PFI/PPP financial assets
- fair value revaluation - - - - (36) - - (36)
- reclassified and reported
in net profit - - - - (3) - - (3)
Changes in fair value of
net investment hedges - - - - - 5 - 5
Currency translation differences - - - - (1) (6) - (7)
Tax on items taken directly
to equity - - - - 2 (3) (42) (43)
Total recognised income for
the period - - - - 41 - 107 148
Ordinary dividends - - - - - - (22) (22)
Joint ventures' and associates'
dividends - - - - (76) - 76 -
Issue of ordinary shares 1 1 - - - - - 2
Buy-back of preference shares - 2 - - - - (3) (1)
Movements relating to share-based
payments - - - - - (2) 1 (1)
Transfers - - - (2) (41) - 43 -
At 30 June 2007 216 46 16 167 167 3 (102) 513
For the half-year ended 1 July 2006
Share of
Equity joint
component ventures'
Called-up Share of and
share premium preference Special associates' Other Accumulated
capital account shares reserve reserves reserves losses Total
£m £m £m £m £m £m £m £m
At 1 January 2006 214 26 18 175 182 5 (328) 292
Net profit for the period - - - - 31 - (3) 28
Actuarial gains on retirement
benefit obligations - - - - 1 - 45 46
PFI/PPP cash flow hedges
- net fair value gains - - - - 25 - - 25
PFI/PPP financial assets
- fair value revaluation - - - - (31) 3 - (28)
Changes in fair value of net
investment hedges - - - - - 7 - 7
Currency translation differences - - - - (3) (4) - (7)
Tax on items taken directly to
equity - - 1 - 1 (3) (14) (15)
Total recognised income for the
period - - 1 - 24 3 28 56
Ordinary dividends - - - - - - (20) (20)
Joint ventures' and associates'
dividends - - - - (7) - 7 -
Issue of ordinary shares - 3 - - - - - 3
Buy-back of preference shares - 11 (3) - - - (11) (3)
Movements relating to share-based
payments - - - - - - (2) (2)
Transfers - - - (3) - 2 1 -
At 1 July 2006 214 40 16 172 199 10 (325) 326
For the year ended 31 December 2006
Share of
Equity joint
component ventures'
Called-up Share of and
share premium preference Special associates' Other Accumulated
capital account shares reserve reserves reserves losses Total
£m £m £m £m £m £m £m £m
At 1 January 2006 214 26 18 175 182 5 (328) 292
Net profit for the year - - - - 63 - 28 91
Actuarial gains on retirement
benefit obligations - - - - 10 - 26 36
PFI/PPP cash flow hedges
- net fair value gains - - - - 32 - - 32
PFI/PPP financial assets
- fair value revaluation - - - - (2) - - (2)
Changes in fair value of net
investment hedges - - - - - 14 - 14
Currency translation differences - - - - (7) (10) - (17)
Tax on items taken directly to
equity - - 1 - (11) (8) (8) (26)
Total recognised income for the
year - - 1 - 85 (4) 46 128
Ordinary dividends - - - - - - (37) (37)
Joint ventures' and associates'
dividends - - - - (24) - 24 -
Issue of ordinary shares 1 5 - - - - - 6
Buy-back of preference shares - 12 (3) - - - (12) (3)
Movements relating to share-based
payments - - - - - 2 (1) 1
Transfers - - - (6) - 2 4 -
At 31 December 2006 215 43 16 169 243 5 (304) 387
15 Acquisitions
On 5 January 2007, the Group invested £30.1m in an investment vehicle,
Regional & City Airports (Exeter) Holdings Ltd ('RCAH'), which acquired a
100% interest in Exeter and Devon Airport Ltd, having entered into a put
option agreement to dispose of a 40% interest in RCAH to Galaxy for a
consideration of £12.0m. The Group exercised this put option on 10 January
2007 and subsequently completed the sale of the 40% interest in RCAH to
Galaxy on 4 April 2007. In the period 5 January 2007 to 4 April 2007, the
Group's interest in RCAH was held as a non-current asset classified as held
for sale, including £6m cash acquired and provisional goodwill inherent in
this transaction amounting to £42.7m. Due to the shareholders' agreement
between Balfour Beatty and Galaxy requiring unanimity of agreement in
respect of significant matters relating to the financial and operating
policies of RCAH, the remaining 60% interest in RCAH has been accounted for
as a joint venture.
On 1 February 2007, the Group acquired the net assets of the Traffic
Systems Division of SAAB AB in Sweden, for an initial consideration of
£3.1m, subject to adjustment to reflect the net assets acquired. The
provisional fair value of net assets acquired was £1.2m and provisional
goodwill arising was £1.9m. The provisional goodwill recognised is
attributable to the acquisition complementing the Group's rail
electrification business in Sweden.
On 30 March 2007, the Group acquired 100% of the issued share capital of
Balfour Beatty Construction Group Inc (formerly Centex Construction Group
Inc), a leading US building company, for a consideration of £191.0m,
deferred consideration of £20.0m and costs of £1.5m. The provisional fair
value of net assets acquired was £33.6m and provisional goodwill arising
was £178.9m. The provisional goodwill recognised is attributable to the
acquisition strengthening the Group's position in the US building market.
On 12 April 2007, the Group acquired 100% of the issued share capital of
Bignell & Associates Ltd, a UK project management company, for an initial
consideration of £0.5m and deferred consideration of £0.2m. The provisional
fair value of net assets acquired was £0.7m and provisional goodwill
arising was £nil.
On 1 May 2007, the Group acquired 100% of the issued share capital of
Sequeira & Gavarette Inc, a US design and programme management business,
for an initial consideration of £2.4m, deferred consideration of £1.5m and
costs of £0.2m. The provisional fair value of net assets acquired was £0.6m
and provisional goodwill arising was £3.5m. The provisional goodwill
recognised is attributable to the acquisition complementing the Group's US
project and programme management business.
The provisional fair value of the net assets acquired, consideration paid
and provisional goodwill arising on these transactions were:
Balfour Beatty Construction Other Total
(formerly Centex
Construction)
Book Fair Book Fair Book Fair
value Fair value value Fair value value Fair value
of value of of value of of value of
assets adjust- assets assets adjust- assets assets adjust- assets
acquired ments acquired acquired ments acquired acquired ments acquired
£m £m £m £m £m £m £m £m £m
Net assets acquired:
Intangible assets - other - 38 38 - 1 1 - 39 39
Property, plant and equipment 4 - 4 - - - 4 - 4
Assets held for sale - - - 30 - 30 30 - 30
Working capital (132) (7) (139) 1 - 1 (131) (7) (138)
Deferred taxation - 2 2 - - - - 2 2
Cash and cash equivalents 128 - 128 - - - 128 - 128
- 33 33 31 1 32 31 34 65
Goodwill 179 5 184
212 37 249
Satisfied by:
Cash consideration 191 36 227
Costs incurred 1 - 1
192 36 228
Deferred consideration 20 1 21
212 37 249
Fair value adjustments comprise intangible assets recognised in respect of
customer contracts and relationships, adjustments to harmonise accounting
policies for the recognition of profit on long-term contracts and provision
for onerous commitments.
The acquired businesses earned revenues of £305m and profit from continuing
operations of £2m (after charging exceptional items of £1m and amortisation
of intangible assets of £2m) in the period since acquisition.
During the first half 2007, £1m deferred consideration was paid in respect
of acquisitions completed in earlier years.
16 Notes to the cash flow statement
2007 2006 2006
first first year
half half
£m £m £m
16.1 Cash generated from operations comprises:
(Loss)/profit from operations - continuing (54) 37 116
Trading (loss)/profit from discontinued operations (1) - 1
Share of results of joint ventures and associates (34) (27) (56)
Depreciation of property, plant and equipment 21 21 43
Amortisation of other intangible assets 3 - 1
Impairment charges 87 17 16
Movements relating to share-based payments 2 2 4
Profit on disposal of property, plant and equipment (1) (1) (1)
Operating cash flows before movements in working capital 23 49 124
Decrease in working capital 158 84 93
Cash generated from operations 181 133 217
16.2 Cash and cash equivalents comprise:
Cash and deposits 218 113 142
Term deposits 263 268 181
Bank overdrafts - - (15)
481 381 308
16.3 Analysis of net cash:
Bank overdrafts - - (15)
Other short-term loans - (27) (1)
Finance leases (1) (1) (1)
Other borrowings (1) - (1)
Cash and deposits 218 113 142
Term deposits 263 268 181
479 353 305
PFI/PPP non-recourse - Sterling floating rate term loan
project finance (2008-2027) (19) (15) (17)
- Sterling floating rate term loan
(2011-2030) (6) (2) (4)
- Sterling floating rate term
loan (2012-2031) (2) - -
Net cash 452 336 284
16.4 Analysis of movement in net cash:
Opening net cash 284 301 301
Net increase/(decrease) in cash and cash equivalents 172 68 (2)
Acquisitions - borrowings at date of acquisition (35) (1) (2)
Businesses sold - borrowings at date of disposal 35 - -
New loans (6) (30) (35)
Repayment of loans 1 - 27
Finance lease principal repayments - 1 1
Exchange adjustments 1 (3) (6)
Closing net cash 452 336 284
17 Post balance sheet events
On 17 July 2007, the Group acquired Carillion Rail Sverige AB, a Swedish rail
contracting company, for a cash consideration of approximately SEK37m.
On 17 July 2007, the Group acquired Chris Britton Consultancy Ltd, a UK consulting
engineering company, for a cash consideration of approximately £3m.
On 18 July 2007, Metronet Rail BCV Ltd and Metronet Rail SSL Ltd went into PPP
Administration (see Note 8).
On 31 July 2007, the Group acquired the business and assets of NAP Partnership
LLP, a UK cost and contract consultancy, for a cash consideration of approximately
£4m.
This information is provided by RNS
The company news service from the London Stock Exchange