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Analysis Study of Balfour Beatty plc Business and Competitive Environment"The company made good progress in the building sector in 2006. Heery, a leading architectural, engineering and programme management business, represents Balfour Beatty’s business interests in USA.
Balfour Beatty’s Civil and Specialist Engineering and Services division, with revenues of 1,920m and 10,455 employees, specializes in engineering, design and management services provider in civil, transport, energy and water sectors in UK, USA, Hong Kong and Middle East. It has a leading market presence in specialised engineering services like overhead transmission lines, gas and water utility contracting and in road management and maintenance resulting in profit from operations tripled to 49m in 2005. The company with strong orders and a number of large contracts under their belt gained growth momentum in 2006 in the engineering sector.
Balfour Beatty’s Rail Engineering and Services division, with revenues of 766m and 5,922 employees, specializes in designing, constructing, equipping, maintaining and renewal of rail assets and systems in UK, USA, Germany, Italy and Portugal. The profit from operations in these services fell by 27% to 32m in 2005. This was a result of full year without maintenance and tighter market in UK and some losses in the US. 2006 saw some progress due to increase in efficiency and improving project volume in London Underground, Germany and Italy. Balfour Beatty Rail Inc has been restructured into a single organisation, headquartered in Jacksonville, Florida, USA. The organisation has shown substantial growth in recent years with strategic acquisitions in the US and Germany.
Balfour Beatty’s Investments and Developments division, with revenues of 465m and only 136 employees promotes, manages and invests in privately funded infrastructure projects and developments in selected sectors in the UK and overseas, through its operating company Balfour Beatty Capital, established in 1997. Balfour Beatty’s is currently conducting PPP/PFI projects in two principal sectors such as infrastructure (comprising transportation, power and waste water treatment) and accommodation (including health and education). It showed 20m profit from operations in 2005.
Balfour Beatty’s Other Service Segments
Balfour Beatty holds 20% share in the Metronet consortium, a 30-year PPP project responsible for upgrading and maintaining two thirds of London Underground’s infrastructure like trains, stations, signalling, track, tunnels and bridges. Balfour Beatty also has four DBFO (design-build-finance-operate) road concessions.
Balfour Beatty is provider of a range of Healthcare services to major UK hospital schemes in London, Edinburgh, Durham and Blackburn providing a total of over 2,500 beds. Through Consort Healthcare, Balfour Beatty is also appointed preferred bidder for 521m PPP contracts in Birmingham Acute and Adult Psychiatric Hospitals and 250m Pinderfields and Pontefract hospitals.
Balfour Beatty operates the largest grouped schools scheme in England called the Transform Schools’ Stoke concession covering 98 schools since 2000. The Rotherham Schools started in 2003, was awarded "Best Community Use Project" in 2005 in the PPP/PFI Journal Awards. The Transform scheme built and maintained 21