Skanska operating margin edges up to 3.3%

Aaron Morby 10 years ago

Skanska’s UK construction business saw operating margins recover slightly in the third quarter, edging up to 3.3%.

In the year to date the firm has booked revenue of £853m and an operating income of £28.5, slightly down on its performance last year.

President and chief executive of Skanska UK Mike Putnam said: “We remain on track to meet our 2013 financial targets.

“Our order bookings are good, with some notable project wins as the market starts to show signs of recovery.”

Over the nine months to date, the company has booked £600m of new work. However, there is a significant amount of work won but not yet booked, presenting a positive outlook for Skanska UK.

“We saw two project win firsts,” said Putnam. “A highways services contract with Peterborough City Council, worth £100m over ten years, was the first project win for our enlarged highways maintenance team.”

This follows the acquisition of Atkins’ highways services business earlier this year.

“The other first was the asset and total facilities management contract for Woking Borough Council, worth up to £30m over 10 years, which expands into local authorities the markets we serve with our facilities management services.

“In addition, we secured the groundworks contract to deliver UK Power Networks projects in London, worth up to £45m over five years.”

Skanska took the decision in the summer to close its fledgeling house building business to focus its investment capital in areas such as infrastructure development, commercial development and construction.

Commercial development projects in London, Bristol and Doncaster are making good progress.

In Doncaster, ground-breaking is set for November at the Bentley Works redevelopment.

In Bristol, construction works have started on Skanska’s development at 66 Queen Square.

Skanska’s green retrofit business has also enjoyed success, including key wins with two healthcare trusts and the Department of Energy & Climate Change.

Putnam said: “We are set to finish the year on target and we are well placed for 2014.”

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