Trading Statement

BICC PLC
13 December 1999


END OF YEAR STATEMENT

Financial Update

BICC, the international engineering, construction and services group,
announces today that the second half operating profits for the on-going
businesses are expected to be similar to those in the first half of the year
and full year, pre-exceptional, pre-tax profits for the business as a whole to
be in line with current market expectations.  Operating cash flow is likely to
be in line with or better than our previous expectations and we continue to
anticipate a net cash position at the year end.

Restructure of the Group

During the course of 1999, BICC has been radically restructured through the
disposal of its cables businesses.  BICC is now a very different company and
will reflect this by seeking shareholder approval early next year to change
its name to Balfour Beatty plc.  The Group has a new Chief Executive in Mike
Welton and a new Finance Director in Ian Tyler, who have been responsible for
managing Balfour Beatty for the last three years.

The sale arrangements for the energy cable business have largely been
completed.  However, two residual issues relating to the cables disposals
remain to be settled.  The Group's partners in the Dubai Cable Company have
yet to determine whether they wish to exercise their preemption rights to buy
the 30% BICC share in that business, which is otherwise due to be sold to
General Cable.  Also, the value of the total net assets transferred in the
energy cable transaction is still to be finally agreed.  As a result of these
factors, the corresponding cash receipts of up to £50 million, previously
anticipated for 1999, will now accrue in 2000.

The Continuing Businesses

The Group's continuing businesses are now as follows:

Building, Building Management and Services
Balfour Beatty is an international specialist in the design, construction,
equipping, maintaining and management of buildings and selected aspects of
their internal environment.

Civil and Specialist Engineering and Services
Balfour Beatty is a leading provider of civil and other specialist
engineering, design  and management skills, principally in the transport and
energy sectors of the international infrastructure market, and including the
United States.

Railway Engineering and Services
Balfour Beatty is an international leader in the design, construction,
equipping, maintenance and management of rail assets and systems.

Investments and Developments
Balfour Beatty promotes and invests in privately funded infrastructure
projects and developments in selected sectors in the UK and overseas.

Data Cable Systems
Brand-Rex is a leading international manufacturer of data and specialist
cables and cable systems.

The Group will in the future report its detailed results in line with the
business segments described above.

These businesses represent a range of growth opportunities and are underpinned
by a sound financial position.  They also offer much improved earnings
quality, with a large and increasing proportion of income arising from longer-
term, more stable contracts and from repeat business and customer partnering.

In order to maximise long-term earnings, we intend to support this basic
restructuring of the Group in two ways.  Firstly, we will continue the
detailed review of our mix of businesses, which will imply reinforcing the
more successful parts by acquisition or investment, and by disposals where
appropriate.  Secondly, we will continue the adjustment of our cost structure
and business processes in line with the new shape of the Group.  A good start
has been made in this area.

Current Trading and Prospects

Trading conditions for the on-going businesses remain generally healthy.  In
the UK building and building services sector, the company's initiatives aimed
at margin improvement continue to bear fruit.  A number of successes were
achieved under the Private Finance Initiative during the year, including
preferred bidder status on the £125 million Stoke Schools contract and the
£220 million UCLH hospital in London.  Existing concessions progressed
satisfactorily and a number of further bids are in preparation.

In rail, several major projects have been secured, including the
electrification work for Railtrack's West Coast Main Line, the Willesden
extension to the Euston approaches remodelling contract, major works on the
Channel Tunnel Rail Link and a new station for West Rail in Hong Kong. As
anticipated, however, rail maintenance margins remain under pressure.

The Group successfully secured a number of projects in the transport sector in
the US.  Elsewhere there continues to be a shortage of major project work
other than in the rail sector and through PFI.

The Group's growing presence in the asset management market was further
augmented by new long-term road maintenance and building management contracts
and an increasing order book in this area will arise from the Group's PFI
successes.  Both Andover Controls and Brand-Rex continue to make good progress
and to perform well.

Enquiries to:

Tim Sharp
BICC Group
Tel: [phone]