Major contractors hope support services will continue to boost profit margins while construction work suffers. The margins on support services are about 5 per centcompared with an average 1-2 per cent on traditional constructionand have the potential for growth and a rise in M&A activity, according to analysts. In pre-close statements last week, Balfour Beatty and Interserve stressed their profits from support services. Balfour Beatty said it had maintained an order book of £15 billion last year by offsetting falling orders in UK construction through support services and US contracting. Interserve said it was expecting a significant hike in support services profits for 2011 as increased competition and the tough economic backdrop continue to create pressure on construction margins.
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