Skanska UK recovers as profit trebles to £44m

Aaron Morby 2 weeks ago
Share

Skanska’s UK business has got back on track after pre-tax profit jumped to £44m last year from £13.5m.

Kelly Gangotra, chief financial officer, sees opportunities ahead from data collection during construction

The improvement led by a focus on working with the right clients and stronger risk management saw operating margins restored from 0.7% in 2017 to 2.2%.

Revenue at the group edged up 7% to £1.9bn.

The turnaround follows a new strategy introduced in 2017 after the UK operations took heavy write-downs on problem contracts.

This saw Skanska set down the challenge to hit or beat tender margin on every contract.

As part of the shake-up, the group’s operating units reduced from nine to seven in a restructuring exercise.

Skanska UK’s two building operating units formerly separated on a geographical basis were brought together into one operation and facility services was combined with the M&E business into a single building services business unit.

Over the year the average number of staff remained stable at 5,700.

Kelly Gangotra, Skanska UK finance director, said: “Looking forward, we see increasing value in the vast amounts of data collected during design and construction.

“This data can improve our own efficiency, aid customers in managing assets once construction is complete and open doors to the development of brand new value adding services and products for customers in the built environment.”

The UK arm is now the star performer in Skanska’s European division, which suffered a loss for the second year running in 2018.

This stemmed from further project write-downs in Poland and an ongoing cost-cutting programme.

Latest news

Council parts company with Kier after road cost row

New contractor hunt starts after dispute over £26m project estimate
21 hours ago

Stricken fit-out firm bought out of administration by rival

Dimension shopfitting hit by woes of retail and dining sectors
11 hours ago

Killed track workers “unaware” of train until it hit them at 50mph

At least one victim was wearing ear defenders
17 hours ago

Piling specialist Van Elle issues another profit warning

Ground engineering giant also dampens hopes of recovery this year
20 hours ago

Construction’s best performing “ultra sites” revealed

Considerate Constructors Scheme reveals supply chain excellence winners: Full list
21 hours ago

Latest winners unveiled for £2bn Severn Trent water work

Barhale/Doosan JV lands another place on AMP7 lots
1 day ago

Further redundancies at failed Welsh contractor

Trade debt owed by Jistcourt due to be revealed next month
2 days ago

Bid race starts for £17m Canterbury link road

Sturry Link Road from A28 to A291 will include a 250m long viaduct
2 days ago

More contractors suspended from Prompt Payment Code

Galliford Try, Ferrovial and Alun Griffiths among firms not paying on time
3 days ago

Track maintenance crash reveals design flaws in rail kit

Driver of road-rail ballast distributor could barely see track
2 days ago

Lendlease names new London construction chief

Promotion for finance head Claire Pettett
3 days ago

“Brexit fatigue” sees surveyors report construction output grow

RICS says fed-up industry just trying to get on with daily life despite the dithering of politicians
2 days ago

Plans go in for 40-storey tower in Docklands

300 construction jobs will be created building 400 bedroom hotel and 279 serviced apartments
2 days ago

Post-Grenfell building and fire safety changes ‘too slow’

MPs slam Government for unacceptable delay in reforming building regulations
2 days ago

Plan to expand Sheffield Olympic Legacy Park

Developer Scarborough Properties to drive development of 750,000 sq ft of business space for sport and health
2 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
1 year ago

Construction restructure costs Galliford Try £10m

Average group net debt rises to £187m after year of writedowns
3 days ago

Six climate activists arrested at concrete plant

Police chief warns construction companies they will be targeted during week of action
3 days ago

Civils and concrete specialist OHOB delivers £27m profit

O’Halloran & O’Brien builds revenue to £300m after expanding from south east base into the Midlands
3 days ago

Worker killed on Asda extension site

Victim "hit by digger bucket" in site tragedy
3 days ago

Leeds Merrion Centre 17 storey office block approved

New office block in shopping centre will cost over £50m to build
3 days ago

£17m Blackpool hotel project out to bid

Muse invited bids for Talbot Gateway scheme Holiday Inn
3 days ago

Countryside wins £400m London Camden Lock estate rebuilds

Work could start on 700-home estate rebuild late next year
4 days ago

Contractor fined for ignoring site welfare order

Manchester firm failed to provide decent facilities for workers
3 days ago

Murphy suffers £5.8m loss

Revenue up 4.4% to £781m driven by transport and power projects
4 days ago

London Mayor uproots Tulip Tower plan

Sadiq Khan blocks 305m skyscraper plan despite city planners' approval
4 days ago

Third Van Elle board director exits

John Foster, group commercial director, departs six months after joining piling specialist
4 days ago

Hunt starts for partner to deliver £1.5bn Wales schools plan

Welsh Government is looking for partner for new public private schools delivery model
4 days ago

HS2 unveils plans for “people mover” on new viaduct

2.3km route will transport people to Birmingham Airport
4 days ago

Manager merry-go-round causing mayhem for contractors

Construction bosses walk-in to new jobs no matter how poor their track record is
4 days ago

Contractor services