Skanska UK operating margin slides below 3%

Aaron Morby 12 years ago
Share

Skanska UK saw its operating margins slide to under 3% in the first three months of the year.

The performance still beats the industry average for a main contractor but is down from 3.6% for last year.

Reporting progress in the first quarter of the year, Skanska said it had booked turnover of £260m and an operating profit of £7.5m in the face of tough trading.

President and CEO Mike Putnam, said: “This is a very credible performance given the prolonged recession facing the construction industry.”

“We are well on track to achieve our financial targets for the year.”

He added: “Although our reported order bookings for the first quarter of almost £170m are behind expectations, we have a healthy pipeline of future opportunities.”

Skanska bought Atkins Highways Services in February, which is expected to complete by June, boosting its workforce by 1,250 people.

In the quarter, Skanska reported its seventh contract for Crossrail, working with Costain to deliver the £110m station at Bond Street.

Also secured was 100 Cheapside, an 18-month contract to demolish and construct a 10-storey commercial building in the City of London.

During this period, Skanska started work on the £1.6bn gas infrastructure replacement project for National Grid, working in joint venture with Morrison Utility Services.

“This involved the mobilisation of more than 3,000 people within a matter of weeks. We are now up and running, delivering works in the east of England and north London,” said Putnam.

Skanska also started work on the £321m later upgraded sections of the M25 during the quarter. Working with Balfour Beatty, the company is upgrading two sections of the M25 to managed motorway.

 

Latest news

Balfour Beatty terminates Danny Sullivan labour deals

Around 500 workers on HS2 will be moved to alternative agencies or be taken on direct
20 hours ago

Trio face prosecution after Hinkley site death

Main contractors and client to face charges over death of site supervisor
20 hours ago

Buyers see recovery in house building sector

But civil and commercial work still in the doldrums
1 day ago

Apprentice saws-off thumb on hotel refurb site

Court hears how digit was reattached and teenager continued training with another firm
1 day ago

Laing O’Rourke tops June contracts league

£919m animal super lab dominates new orders
2 days ago

TSL turnover smashes £500m as profit almost trebles

Data centre and logistics contractor rises high on surging demand
1 day ago

Gleeson Homes chief exec leaves business after restructure

Management revamp after "challenging" year
2 days ago

Green light for 1,600-home Oldham town centre overhaul

Plans for over 1,600 homes across six regeneration sites approved
2 days ago

DSM wins Norwich city centre clearance job

Anglia Square shopping centre clearance for £300m scheme
2 days ago

13-year-old becomes UK’s youngest qualified digger driver

Grandson of Gallagher Group chairman sets industry record
2 days ago

Cubby reborn in £12m Svella-backed takeover

£50m revenue target set as 14 firms combine under new Cubby Group banner
2 days ago

North East NHS trusts plot £3bn health estate overhaul

Market engagement begins for major construction push across four trusts
2 days ago

HG goes green on cranes in £1.2m switch to battery power

Diesel-free crane drive cuts fuel bills by 94%
3 days ago

Developer fined £165,000 for fire safety failings

Firm ignored fire safety orders on apartment job in Preston
3 days ago

Bidding to start for £1.8bn North West framework

Contractors invited to bid for latest Procure Partnerships deal
3 days ago

Hill hits record £90m profit as homes pipeline swells

Build-to-rent push and £4.8bn contracting book to fuel next growth phase
3 days ago

Rayner unveils £39bn plan to build 300,000 social homes

Council building revival and rent reform feature in social and affordable homes plan
4 days ago

Keltbray bounces back with £3.2m profit

Tighter controls and smarter project selection fuel strong turnaround
4 days ago

VINCI JV wins 500-home twin town centre revamps

Chester Northgate phase 2 and Northwich Weaver Square schemes move to delivery stage
4 days ago

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
4 days ago

How to see your stories on the Enquirer

Join our Suppliers and Buyers directory to get your news published
4 days ago

Henley lands Midland Mill revamp on Leeds tower scheme

Restoration of 18th-century mill kicks off on South Bank regeneration project
3 days ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
4 days ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
5 days ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
5 days ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
4 days ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
5 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
5 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
4 days ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
5 days ago