Project delays see Skanska UK margins slip to 2.7%

Aaron Morby 12 months ago
Share

Tougher market conditions saw Skanska UK’s construction and development business deliver flat operating profit of £38.4m on turnover up 12% to £1.43bn in 2015.

Mike Putnam Skanska
Skanska UK boss Mike Putnam says operation is performing well in tough and extremely competitive environment

This saw operating margins at the combined business slide from 3% to 2.7% as delays in certain projects and tougher market conditions took their toll.

Mike Putnam, Skanska UK’s president and CEO, said: “In a tough and extremely competitive environment, I am pleased to report a year of steady performance across the business.

“A ‘book-to-build’ ratio of 104% signifies a strong pipeline of work and provides a firm foundation for our business in 2016 and beyond. There are also good future opportunities, worth around £1.9bn, where we are working on an early involvement or two-stage basis.

“Sustainable growth is our goal and we will deliver that in line with our purpose to build for a better society,” he said.

During the year Skanska UK booked £1.49bn of orders, down from £1.68bn in 2014, which proved an exception year for the firm’s major project teams.

Skanska also began work on several significant projects, including: the £140m New Papworth Hospital in Cambridge; AMP6 projects for Thames Water, Welsh Water and Anglian Water, worth £454m over five years.

Skanska has also just become one of the first constructors to achieve company-wide Level 2 BIM Capability verification from BSI  – a requirement from April 2016 for new public sector contracts.

Before the end of the year Skanska  sold its investment in Barts and the Royal London for around £80m to the groups three pension funds – 60% by the UK, Sweden 20% and Norway 20%.

Latest news

Subbies under attack from new breed of aggressive QS

Specialists at war with main contractor quantity surveyors
2 days ago

Scaffolding giant Palmers back under British ownership

New owner Colin Butt seals post-Brexit deal with German firm Xervon
2 days ago

Asbestos analyst fakes air testing certificates

Court hears how safety checks were not carried out properly on Manchester site
2 days ago

Ealing set for first major office scheme in a decade

Demolition work to start in April paving way for £50m building project
2 days ago

Subcontract rating wins Buckingham £37m waterpark

Coventry City Council scores package contractors in picking winning main contract bid
3 days ago

Crossrail in chaos as M&E work ripped out

100 electricians let go at Paddington as installation work grinds to a halt
3 days ago

Barratt finance boss exits after 15 months

Neil Cooper is leaving by mutual consent with immediate effect
2 days ago

Trade body questions future of CITB

Skills body in the firing line as it gears-up for crucial levy vote
3 days ago

Skills cards for fringe trades to be phased out

230,000 Construction Related Occupation cards to become obsolete
3 days ago

Mott MacDonald names new managing director

Mike Haigh rises from graduate to group MD in 35 years at Motts
2 days ago

Betting Spy: Rampant Spurs a big price at Man City

A Tottenham and Everton double pays a healthy looking 7/1
2 days ago

Pod specialist makes appeal to creditors

Modular contractor Aartoft could be heading for CVA
3 days ago

Plans lodged for 19-storey Coventry student block

Developer Crosslane submits 583-bed student accommodation scheme
3 days ago

Morgan Sindall wins Liverpool Knowledge Quarter work

Liverpool City Council awards two contracts worth £47m on Paddington Village scheme
4 days ago

Van Elle profit dips after Stock Market listing

Fall in specialist piling business profits hits first half performance
3 days ago

Skanska tightens grip on south west highways

Latest £175m Somerset deal follows £245m Devon highways term maintenance agreement
3 days ago

Watkin Jones targets PRS as profits surge

Strong student accommodation pipeline builds platform for growth
4 days ago

Morgan Sindall crowned 2016 contracts champion

Wates, Willmott Dixon and Mace join top 10 firms winning most work last year
4 days ago

Ex-Balfour finance chief to join Mitie after another profit warning

Two-day board meeting at Mitie to review strategy
4 days ago

Lendlease set for landmark £350m Google HQ job

Decision taken on vast King's Cross building contract last Thursday
5 days ago

U+I plans £300m of office refurb work

Developer links up with American firm to target sites in London, Manchester and Dublin
4 days ago

Loxam ups bid for Lavendon to £459m

Belgian and French giants slug it out for control of Leicester-based powered access specialist
4 days ago

Plans in for £40m Aberdeen FC stadium

Dons press ahead with 20,000-seat stadium and football academy plan
4 days ago

London Council unveils Wood Green regen plan

Major Wood Green town centre scheme relies on Crossrail 2 reroute
4 days ago

Laing O’Rourke to be replaced on £80m Whitechapel job

L&Q going back to market for new contractor on mixed-use scheme
5 days ago

Callum Tuckett joins Multiplex

New role for former Laing O'Rourke commercial director
5 days ago

Green light for £300m Luton regen scheme

Leisure and residential scheme to transform former Vauxhall car plant
5 days ago

Kier gears up for £85m Eastbourne mall expansion

Work to get underway on Arndale shopping centre extension
6 days ago

CITB plans levy cut in bid to survive

Training body offers to cut levy from 0.5% to 0.3% of staff wage bill
6 days ago

Wates starts £40m Kilburn housing scheme

Residential arm strengthens housing team as workload rises
6 days ago

Contractor services