US President Donald Trump's reform on business tax is set to boost Balfour Beatty's 2017 profits.

The recently passed Tax Cuts and Jobs Act, which contains significant tax reform measures, is estimated to net the UK-based contractor around £20 million, according to the Group's analysis of the changes.

In a statement, Balfour Beatty said: "The reduction in US Federal corporate income tax rates from 35% to 21% will lead to a reduction in the effective tax rate on US earnings from c.40% to c.26% in 2018 and beyond.

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"Furthermore, as a result of this reduced tax rate on US assets the Directors' valuation of the Investments portfolio will increase by approximately £95 million.

"In addition to the above, the Group expects 2017 earnings will benefit from a non-underlying one-off non-cash credit from the revaluation of US deferred tax liabilities. Based on the net deferred tax liabilities at the end of 2016 this credit is expected to be approximately £20 million."

(LM)