Balfour Beatty in the fast lane

SUPPORT services giant Balfour Beatty has won a lucrative, £241m deal to widen one of the busiest stretches of the M1 motorway, as it continues to shrug off the problems affecting its rivals.

Chief executive Ian Tyler said the group would soon begin transforming the M1 into a four-lane highway between the M25 and Luton.

This section of motorway is one of the most notorious in Britain, carrying some 160,000 vehicles a day.

Tyler said the deal reflected Balfour's strength in the market for public sector contracts. It is already widening a section of the M25 close to Heathrow airport.

Full-year results from the group today showed its order book stands at £6.8 billion, 17% up on a year ago, and Tyler said momentum was building across the business.

Pre-tax profits in the 12 months to December rose 15% to £150m on turnover of £4.2bn , up 13%.

A £10m profit contribution came from Balfour's one-fifth stake in London Underground consortium Metronet. Tyler insisted that despite widespread criticism, Metronet had achieved a great deal in its first full-year of work on the Tube, where it is responsible for the upkeep of several lines.

He said: 'We are only behind schedule in one or two areas.'

Balfour's growth comes as rivals such as Jarvis continue to struggle. Its shares, up 33% in the past year, were steady at 318½p today. Shareholders will receive a total dividend of 6.6p, up 10%.