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By his own admission, Ian Tyler, Balfour Beatty鈥檚 chief executive, finds himself in a 鈥渟lightly odd position鈥� at the moment.

It鈥檚 12 days before the company鈥檚 results for the year to 31 December 2007 are announced and, although the broader economic picture is one of doom and despondency, most of the City is purring at the prospect of the UK鈥檚 largest contractor breaking through the 拢7bn-turnover barrier with pre-tax profit touching 拢200m. In 2006 it made 拢125m on sales of 拢5.9bn.

The contradiction of credit crunch headlines and Balfour Beatty鈥檚 relentless rise from a 拢3bn-turnover contractor five years ago is not something that worries the amiable Tyler. 鈥淲e are in a position that鈥檚 as strong as it鈥檚 ever been. We鈥檙e confident about the next two years.鈥� He concedes the commercial market may dampen over time, but it鈥檚 not an area to which Balfour Beatty is heavily exposed.

Then again, when your work is spread across 17 markets and four continents, what can go wrong? 鈥淭here鈥檚 no real answer to that question,鈥� he says, smiling. 鈥淭here are all sorts of things we鈥檙e keeping an eye on, but there鈥檚 no one issue that will fundamentally affect the business in the long term.鈥�

According to Joe Brent, a Citigroup analyst, things to be watched include a slowdown in spending by the UK government and its 鈥渦nderweight鈥� operations in the booming Middle East market, which leave it 鈥渘owhere to bail out鈥� should things turn nasty elsewhere in the world.

Like the US, for example. Tyler wants turnover contribution from across the pond to grow in the medium term from 25% to 40%, and even talk of a US recession is not something that outwardly worries him.

He says: 鈥淲e have a balanced spread of businesses across six states that vary markedly. Only 10% has any exposure to the weakening residential market.鈥�

We don鈥檛 spend too much time worrying about what people think about us

Perhaps his relaxed demeanour is also owing to the purchase of Texas-based housebuilder Centex for 拢184m last February, dubbed 鈥渁 great bit of business鈥� by one analyst. This was followed last week by GMH Communities Trust, snapped up for 拢180m. Both are big players in the military market, and US spending on soldiers鈥� accommodation is unlikely to fall anytime soon.

It is the kind of canny decision-making that has led to Tyler鈥檚 solid reputation in the Square Mile since he stepped up from chief operating officer to replace Mike Welton on New Year鈥檚 Day 2005. At the time, the share price was 311p and it has climbed steadily since (see graph, opposite) to 451p this week.

Most analysts agree that his three-year tenure has been marked by substance over style. Andy Brown, an analyst at Panmure Gordon, says: 鈥淔rom an investment point of view Balfour does what it says on the tin. It is a solid contractor and engineer without the bells and whistles. It lets the share price take care of itself, based on delivery.鈥� Tyler agrees: 鈥淲e don鈥檛 spend too much time worrying about what people think about us. In the long term it will come down to delivery, provided that we do what we say.鈥�

Another analyst says its heads-down approach can border on arrogance, despite the chief executive鈥檚 likeability. 鈥淚ts presentations are limited to the basic details and seem to say, 鈥榃e鈥檙e huge and have been doing this for years so you鈥檒l have to come looking if you want any more information鈥�.鈥�

Amid the substance/style debate, some have argued the share price is undervalued, given the company鈥檚 robustness. It prompts a diplomatic reply from Tyler: 鈥淭he share price is what it is. If I compare it with other companies I cannot rationalise why we鈥檙e valued as we are and others are too. Maybe there is a lack of belief out there about our ability to manage risk.鈥�

Maybe so, but his prudent cash management has led some in the City to label him a safe pair of hands. It is a description that raises a smile but one he is not entirely comfortable with, perhaps because it suggests an unfavourable comparison with John McDonough at Carillion. He has taken over Alfred McAlpine to create a 拢5.3bn company.

Tyler says: 鈥淪afe, in that we have avoided the type of risk that can kill the sector? It鈥檚 very nice to be called that but if it鈥檚 implying we are less dynamic than our rivals, I would point to an exciting growth curve against a strategy that has delivered the goods.鈥�

We didn鈥檛 indulge ourselves with Alfred McAlpine because it wouldn鈥檛 have really got us anywhere

And those sexy Carillion deals? 鈥淎t the time we had a look at Mowlem, but we didn鈥檛 indulge ourselves with Alfred McAlpine because it wouldn鈥檛 have really got us anywhere. In terms of Mowlem, I would say it was a better fit for Carillion than us.鈥�

Given his background as a chartered accountant, just how attached is he to a no-nonsense contractor like Balfour Beatty? 鈥淓normously. I鈥檓 deeply proud of what it does and somewhat humbled by what I do. I am also very excited about what we can achieve over the next five years.鈥�

Then the accountant鈥檚 pragmatism kicks in. 鈥淏ut at the end of the day, my job is to maximise value for shareholders and if someone comes over the hill with an offer that is in the best interest of shareholders I鈥檇 have to look at it.鈥�

Looking forward, he says the company will follow the wider trend towards support services, although the emphasis will be on consultancy rather than facilities management. In the medium term, he plans to double its profit contribution from 10% to 20% through 鈥渢houghtful and careful鈥� growth.

As the 47-year-old Tyler admits: 鈥淭he relationship with major customers has changed because they are simply requiring more of us 鈥� not just as a deliverer but in terms of wider skills management. For example, the National Grid needs us to provide intellectual input as opposed to just delivery. They are skills we can鈥檛 outsource.鈥�

Not that he likes the label 鈥渟upport services鈥�. He prefers to call it the 鈥渕anagement鈥� side of the business. 鈥淥ne end of support services is upstream and the other is maintenance. I don鈥檛 know why the bit in the middle called 鈥榗ontracting鈥� should be seen as any riskier.鈥�

If Balfour鈥檚 growth continues at this rate, it won鈥檛 be for long.