Revenue for the year to December 31 2010 fell to £1.277bn reflecting the general market recession and the the loss of a huge term contract with BT to Carillion.

Operating profit of £38.2m represented an operating margin of 3% which was an increase on 2009 levels.

Mike Putnam, President and CEO, Skanska UK said, “I am pleased with our results for 2010. They are in line with our targets and expectations and are evidence of the commitment of our staff to the business, and the focus we have all placed on managing Skanska UK to deliver stable results during these challenging market conditions.

“Whilst we expect market trading conditions to remain similar during the coming year, we will continue to carefully select and target the right projects for Skanska focussing upon delivering the expectations of our clients and shareholders alike.

“The new year marked the start of our new “Profitable Growth” Business Plan for the group. In the UK, we are looking at a number of exciting opportunities and sectors to strengthen our position.

“These include our focus on the Energy from Waste sector where we are actively working to secure opportunities and Residential Development, which we announced recently.

“This was followed in January by the purchase of our first development site in Cambridge.

“The year has also started on a high note, with the award of a £30m project to construct the Isaac Newton Academy in Ilford for the London Borough of Redbridge.”