Skanska UK margin hits 3.6% after strong year

Aaron Morby 10 years ago

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.

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