AGM Statement

Balfour Beatty PLC
13 May 2004


13 May 2004



                               BALFOUR BEATTY PLC
                               ==================

                                  AGM STATEMENT
                                  =============


Reporting to shareholders at the company's Annual General Meeting, Balfour
Beatty plc Chairman, Sir David John, said:

'As is customary, I would like to take this opportunity to update you on trading
so far this year.

'I am pleased to report to shareholders that trading in 2004 to date, is in line
with expectations. Order intake in the year so far has been strong and, since
the year-end, our confirmed order book has grown to in excess of £6.5 billion.
The Group's mix of engineering, construction and services businesses, which
serve predominantly stable or growing markets, offers a strong business base and
good long-term growth prospects.

'In our Building sector, both trading performance and order intake are
satisfactory. Performance remains good on the £700 million facilities management
contract for Royal Mail and good progress has been made on the major PFI
projects for Stoke and Rotherham schools and Blackburn and UCLH hospitals. A
number of notable projects have been secured, including a new facilities
management contract for the BBC and the construction work for the East Lothian
Schools PFI. Mansell, which was acquired in late 2003, has made a good start to
the year and is performing to expectations.

'In our Engineering sector, performance in US civils and UK utilities continued
to improve following the difficulties experienced last year. Major new contracts
were secured for specialist engineering works on London Underground, road
projects in Ohio and Pennsylvania and for the £171 million A46 Early Contractor
Involvement road scheme in Nottinghamshire.

'In Rail, good progress was made towards the handover of our maintenance
responsibilities in Kent and Anglia to Network Rail and in the relevant
financial settlements. In early April, we were awarded new UK rail renewals
contracts likely to be worth in excess of £500 million over their initial
five-year duration, with a workload of £113 million in the first 12 months. Work
on the £500 million contract to replace track on the London Underground under
the PPP scheme is now well under way.

'In our Investments business, preferred bidder status was achieved for the
£521 million Birmingham Hospital project, due to reach financial close in March
2005, and, subject to final ratification by the Scottish Executive, the £140
million North Lanarkshire Schools PFI. Metronet, which began work on the
Bakerloo, Central, Victoria and Sub-Surface Lines of the London Underground in
April 2003, continued to perform in line with expectations.

'We continue to explore opportunities for improving the Group's business mix in
order to ensure that the momentum we have achieved in the growth of shareholder
value in recent years continues over the longer term.

'I believe that, as stated in our Annual Report, we can expect another year of
satisfactory progress in 2004.

'Our half-year results will be announced on Wednesday 11 August.'

                                      ENDS



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