Skanska UK margin hits 3.6% after strong year

Aaron Morby 10 years ago
Share

Skanksa UK has bucked the downward trend in contractors’ margins to deliver its fourth consecutive year of steady results.

The UK contracting arm of the international construction giant ended the year with a spate of big contract wins lifting the order book by 23% to £1.08bn. But the order backlog dropped 5%.

Operating margins improved from 3.3% to £3.6% as operating profits rose 4% to £42m on revenue down 4.5% at £1.17bn.

Mike Putnam, President and CEO, Skanska UK, said: “Revenue for the year was in line with our expectations.

“I am particularly delighted to see the significant increase in our order backlog towards the end of last year, despite the current recession in the construction market and the limited number of public-sector projects.

He added that Skanska would continue to be discerning about the choice of future projects and investments it took on.

“In 2012, we also made good progress in our strategic profitable growth areas.

“We launched our residential homes offering, purchased land for commercial development and signed a joint-venture agreement to deliver concrete gravity foundations for offshore wind turbines.

“In addition, we were named as one of 13 companies on the Mayor of London’s RE:FIT framework to improve the energy efficiency of public buildings in the capital.”

 

Operational highlights

Strategic utility deal
A £1.6bn Gas Distribution Strategic Partnership contract with National Grid, in 50/50 joint venture with Morrison Utility Services.

M25 completes ahead of schedule and new contract awarded
A £320m contract with the Highways Agency for the later upgraded sections of the M25, in 50/50 joint venture with Balfour Beatty.

Skanska enters the waste to energy market
Skanska AECOM jv named the preferred bidder for big waste treatment facility for Bradford and Calderdale.

Skanska enters managed highways sector
Skanska in JV with Atkins signed first asset support contract for south-west region over a five year term.

Skanska launches sustainable homes
First homes went on sale at Seven Acres in Cambridge embracing the best modern Scandinavian design offers, built to the Code for Sustainable Homes level four or five

Land acquired for commercial development
First land acquisitions for commercial development at Monument Estate in the City of London for flagship sustainable building.

Deep-sea wind offering powers ahead
Formed JV with SMIT Marine Projects to design, construction and installation of self-buoyant concrete gravity foundations for offshore wind turbines.

Green retrofit moves ahead
Efforts to develop its green retrofit business took a significant step forward when the company was named as one of 13 companies on the Mayor of London’s RE:FIT framework for more than 400 buildings.

Latest news

HS2 Euston needs full design reset as costs set to double

Spending watchdog warns Euston stop-start delay will simply inflate already ballooning costs
4 hours ago

Bid rigging: Keltbray to appeal and so could Squibb

Both contractors "disappointed" with level of fines
3 days ago

Ten demolition firms fined £60m for bid rigging

Full details of fines with Erith and Keltbray hardest hit
4 days ago

Retail contractor J M Scully files administration notice

£23m turnover Dorset based contractor lodges court notice
3 days ago

Civils specialist M Lambe delivers record performance

Housing civils specialist seeks to diversify in face of challenging housing market
3 days ago

Willmott Dixon clinches £60m Oxford Brookes University job

Preparation work starts on two new buildings at Headington Hill campus
3 days ago

Ferns seals £50m+ Openreach network services deal

Five-year south west deal to provide civils, poling and complex manhole programme
3 days ago

20 firms win £4.5bn Southern construction framework

A dozen new firms secure spots on fifth generation public sector deal
4 days ago

Call grows for bolder 18m second staircase rule for flats

Architects, surveyors and builders professional trade bodies demand lower height threshold than proposed 30m
4 days ago

GRS Roadstone warns staff following cyber attack

Materials giant sends out letters highlighting the extent of the attack
4 days ago

Inland Homes to suspend shares as results delayed again

Auditors need more time to go through embattled house builder's books
4 days ago

Kier wins £73m Southport events centre job

Local supply chain set to benefit from major new project
4 days ago

Multiplex profit rebounds as margin restored to 2.9%

London tower builder predicts return to revenue growth this year as major schemes advance
4 days ago

Upbeat Vistry to re-open mothballed offsite factory

Former Countryside timber panel factories rebranded Vistry Works in revived drive to deliver 5,000 units a year
5 days ago

Builder crushed and blinded in wall collapse

Property owner in court after barn conversion goes horribly wrong
5 days ago

Keltbray bags £140m haul of energy infrastructure work

Specialist secures trio of power frameworks, two battery storage facilities and an energy from waste package
5 days ago

Government awards £1.8bn for energy retrofit schemes – list

Housing and public building decarbonising funds awards to support 20,000 construction jobs
5 days ago

Landmark London scheme switches from flats to student rooms

Regal London rethinks Old Kent Road scheme with 900 student rooms and 220 affordable homes
5 days ago

Align reveals designs for final portal of HS2 tunnel

Contractor confirms how final key structure on project will look
5 days ago

Plans in for 1.4m sq ft of industrial space at Fiddlers Ferry

Peel NRE to appoint demolition contractors for coal-fired power station in weeks
5 days ago

Tilbury Douglas to replace hospital hit by weak concrete

Stoke-on-Trent outpatients building containing Reinforced Autoclaved Aerated Concrete to be replaced
6 days ago

Derby picked as destination for Great British Railways HQ

Public vote secures Derby's bid to be nerve centre of the rail industry
6 days ago

London tower over historic Leadenhall market approved

Building work to start in 2025 on 32-storey tower by historic city market
6 days ago

PfH starts race for £520m housing decarbonising deal

Four-year framework covers service specific lots from £5m to £100m
6 days ago

“Rock solid” balance sheet and record results for Henry Boot

Firm sees early signs of recovery this year in core markets
6 days ago

£200m Edinburgh Haymarket office and hotel approved

Haymarket Yards scheme to move to construction in 2024
6 days ago

Countryside closes deal for £80m build to rent homes

Deal with private rental developer Sigma to speed up delivery at two sites
6 days ago

Wates commercial director joins Caddick

Neil Trubshaw one of a string of appointments as contractor looks to expand across the north
6 days ago

Fusion21 names 16 winners for £125m painting framework

Latest deal will last four-years for public sector clients
6 days ago

Watkin Jones breaks ground on Cardiff 700 flats scheme

Largest build-to-rent scheme in Wales gets underway
1 week ago

Contractor services