Vinci UK profits soar despite £18m civils loss

Aaron Morby 1 year ago
Share

Vinci’s UK construction operations returned to strong profit last year despite further losses at the Taylor Woodrow civil engineering business.

Chairman Bruno Dupety has all building regions back in profit and sees strong growth ahead at Taylor Woodrow

A near five-fold jump in pre-tax profit to £22.4m was driven by proceeds from the sale of a parcel of land held by the firm’s joint venture in the New Covent Garden Market site in London. Vinci plc group revenue fell from £949m to £871m.

At the Building business, the largest trading division, pre-tax profit slipped to £6.5m in 2017 from £7.5m previously.

But for the first time in several years all six building regions traded profitably with revenue up 3.7% to £422m.

Even though contract awards slowed towards the end of last year, all regions have each secured over £40m of work for 2018 and are preferred bidders on over £450m of projects.

The Taylor Woodrow civil engineering division continued to struggle last year from the fall-out from the Nottingham Tram legacy project. Losses deepened to nearly £18m from £12.6m previously.

Excluding this project the civils business, achieved a £1.2m operating profit, close to a 0.6% margin on reduced revenue of £205m.

Vinci plc trading division 2017
Pre-tax Revenue
Divison 2017 2016 2017 2016
Building £6.5m £7.5m £422m £407m
Civil Engineering -£17.7m -£12.6m £205m £269m
Facilities £5.5m £3.6m £224m £238m
Development/PFI £34.8m £3.7m N/A N/A
Other -£6.7m £2.2m £20m £35m

Commenting on the civils division performance, chairman Bruno Dupety said: “Although many of our commercial challenges have been closed in 2017, the number of projects projecting an end loss has increased from two at the end of 2016 to three.

“One of these can be converted back to profitability, however the same two as at the end of 2016 will remain loss making until their completion.”

He added that while Taylor Woodrow’s staff headcount had remained constant at 570, it had now cut it reliance on agency staff by 25% last year.

Looking ahead civil engineering sees strong growth prospects. The firm’s JV with Balfour Beatty for N1 and N2 contract packages on HS2 worth £2.5bn will secure a third of Taylor Woodrow’s annual revenue until 2024.

M6 and M4 Smart motorway jobs, again with Balfour Beatty are due to start this year in the first quarter and Q3, respectively.

The firm is also preparing to bid for AmeyCespa’s next energy from waste scheme following the successful completion of the project at Allerton.

Vinci Facilities operating margins rose from 1.5% to 2.5%, contributing £5.5m profit from reduced revenue of £224m from more selective bidding.

Dupety added: “We enter 2018 with an order book of £925m, which makes us confident for our performance next year and going forward, if we continue relentlessly to focus on delivering our projects on time, safely, with a high and improving level of quality and productivity.”

Retention payments held by Vinci plc totalled £31.5m, while £23m of its cash was held by its client retentions.

Latest news

Burst pipe causes flash flood at Battersea Power Station site

Video: Watch dramatic footage of water pouring through major London project
11 hours ago

Wates trumpets record order book despite Brexit slowdown

9% fall in construction revenue offset by rise in residential and property services
3 hours ago

Vinci bags £100m UCL East student blocks deal

Firm secures Olympic Park twin student buildings
2 hours ago

Persimmon launches retention scheme for home buyers

New home owners can withhold cash until any build faults are sorted out
3 hours ago

Subcontractors wanted for South Coast sites

Work opportunities up for grabs at Meet the Buyer event: Register now
2 hours ago

Griffiths to restart Dawnus £14m Swansea road job

Welsh civils firm to take on Kingsway city centre scheme
21 hours ago

Hunt for £6bn Meridian Water phase 2 developer

Up to 250 affordable homes to be built in Meridian Two scheme
1 day ago

BBC construction skills blasted over EastEnders set woes

Lack of project management skills leads to £27m cost over-run and five-year delay
1 day ago

Boost your online presence – join the Enquirer Directory

New site for suppliers and buyers showcases products, services and latest stories
11 months ago

Kier slumps to £35.5m loss as problem contracts continue

Workloads wobbling in highways, utilities and housing maintenance markets
1 day ago

Go-ahead for £175m Cumbrian deep coal mine

Plans advance for Britain's first deep coal mine for 30 years
1 day ago

Hi Vis site wear launched for pregnant women

Clothing designed to make life safer and more comfortable "from bump to baby"
1 day ago

Speedy buys powered access hirer for £9.6m

Lifterz deal allows Speedy to offer nationwide powered access equipment hire
1 day ago

Build to rent specialist plans Bolton urban village

Placefirst to use in-house contractor for £27.5m scheme
1 day ago

Water winners revealed for £2bn Severn Trent spend

More contractors win first lots on AMP7 as client revamps working practices
2 days ago

Stranded Carillion chief takes helm at Kier

Andrew Davies named new Kier chief executive
2 days ago

Interserve £170m prison project to be rebid

Ministry of Justice confirms Glen Parva to be tendered as a publicly funded project
2 days ago

Cabinet Office promises Interserve subbies will get paid

Parliamentary Secretary makes pledge in House of Commons debate
2 days ago

Sir Robert McAlpine commercial director exits

Martin Pitt steps down from board after four years at group
2 days ago

Lakehouse subbies plan showdown with Sureserve bosses

Suppliers owed millions to demand answers at company AGM
3 days ago

Tolent to build first homes at £400m Leeds scheme

Builder gets foot in the door with prototype homes for Kirkstall Forge
2 days ago

Interserve subcontractors told it’s business as usual

Outsourcers circle Interserve support services division
3 days ago

Morgan Sindall wins 20-year Sellafield civils deal

Four teams named for Sellafield decommissioning project partnership
3 days ago

Hunt for quartet to deliver £700m Birmingham Uni pipeline

University is preparing to deliver phase two of its estate masterplan
3 days ago

Stepnell wins £14m Northampton Vulcan works redevelopment

Historic factory to be refurbished for business start-ups
3 days ago

Hunt starts for developer on £200m South Shields scheme

South Tyneside Council looking for housing partner and remediation specialist
3 days ago

Revamp plans for Birmingham Moor Street station unveiled

Transfer deck across the top of station will connect to all platforms
3 days ago

Interserve workers told to report for work as usual

Interserve subsidiaries to trade solvently as PLC business pre-packed
6 days ago

Interserve to file for administration as rescue rejected

Shareholders vote down rescue plan
6 days ago

Dawnus Group goes into administration

Grant Thornton now in charge of contractor which employed 700 staff
6 days ago

Contractor services