The shares of Balfour Beatty (LSE: BBY) were flat at 285p this morning after the global infrastructure firm announced two new coastal defence deals with councils in Blackpool and Wyre.
The contracts will involve Balfour rebuilding 2.9km of the original 1930s seawalls in these regions between now and 2017, having completed extensive sea-defence work with both councils over the last 13 years.
The combined deals are worth £73m and will largely be funded by the Environmental Agency, with the purpose of avoiding flooding and protecting Britain’s coasts from further sea erosion.
Commenting on the deal, Balfour Beatty’s chief executive Andrew McNaughton added:
“Drawing on our extensive experience of delivering coastal defence schemes, we will utilise innovative construction methods such as BIM to deliver first class civil engineering schemes that will protect over 12,000 properties and local infrastructure from the risk of coastal flooding.”
With a market cap of £2bn, Balfour’s shares trade at 15 times their expected earnings, and offer a prospective dividend yield of 5%.
But while Balfour has been winning plenty of contracts in 2013, does it deserve a place in your long-term portfolio?
