23rd May 2006 07:01
Balfour Beatty PLC23 May 2006 23 May 2006 BALFOUR BEATTY AWARDED EXTENSIONS TO TWO ROAD MAINTENANCE CONTRACTS =================================================================== TO THE VALUE OF £170 MILLION ============================ Balfour Beatty, the international engineering, construction and services group,announces today that its road management and maintenance company, RCS, has beenawarded extensions to two of its long-term local authority road maintenancecontracts, adding £170 million to its forward order book The highways maintenance contract for North Yorkshire County Council, which wasawarded in January 2002, has been extended by four years from 2008 to 2012. Theextension will be worth approximately £140 million and covers almost 8,000kilometres of country roads and over 1,500 bridges. The scope of the contractcovers carriageway and footway maintenance, winter maintenance, street lightingand emergency response. In Hampshire, the extension of the contract, which began in 2002, is for oneyear to 2008 and is worth approximately £30 million. It covers the maintenanceof county roads and covers a similar scope of work to the north Yorkshirecontract. In both cases, the original contracts were won on the basis of quality and pricein approximately equal proportions. Commenting on the awards today, Balfour Beatty Chief Executive, Ian Tyler said:"These contract extensions represent a strong endorsement of our processes andperformance in road management and maintenance, and reflect great credit on ourteams and their ability to work with our customers and respond to their needs." RCS now has a forward order book of over £900 million and with annual sales ofapproximately £230 million is one of the top three road management andmaintenance companies in the UK. RCS is also responsible for the management and maintenance of motorways andtrunk roads across Southern England from the Kent coast to the West Country inHighways Agency Areas 2, 3 and 4. It has other local authority contracts inWestminster, Wokingham and Surrey and maintains Balfour Beatty's PFI roadconcessions in Devon and Dorset, Derbyshire, Yorkshire and the West of Scotland. ENDS Enquiries to: Tim SharpTel: 020 7216 6884www.balfourbeatty.com Notes to Editors: 1. RCS was established in 1996 and has approximately 2000 employees. Its visionis to be the UK's leading operator and team maintenance provider, renowned forcustomer service, respect for people, protecting the environment and providingbest value. 2. Balfour Beatty's other long-term support services businesses include: - Balfour Beatty Utilities which is maintaining and upgrading water and gassystems across the UK in long-term contracts worth approximately £1 billion. - Haden Building Management which manages and maintains premises and facilitiesfor clients in the public and private sectors on long-term contracts. Itscustomers include the Royal Mail, the Benefits Agency, BT, the BBC, Tesco,Sainsbury and the Heathrow Express. - Heery which is one of the US's leading programme and project managementcompanies and a leader in the US primary and secondary education market. 3. Balfour Beatty is a world-class engineering, construction and services group,well positioned in infrastructure markets which offer significant growthpotential. Its partnerships with public and private customers generate secure,sustainable income. Its financial position, with significant net cash and withstrong operating cash flows, offers continuing flexibility to add additionalcapacity and expertise to the business mix and to make appropriate investmentsin PPP and other long-term growth opportunities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Balfour Beatty