The French contractor’s UK building business returned a £8.6m pre-tax profit after suffering a loss of more than £78m in 2016, on top of a loss of £19.5m in the previous year.
The recovery plan delivered an operating margin of 1.2% on revenue up 7% to £597m.
This uplift in turnover was due in part to the consolidation of the Thomas Vale subsidiary last Summer, which completed the absorption of its regional building contractors like Denne and Leadbitter into the core Bouygues UK business.
During the year the business suffered a strong cash outflow, which saw the French parent inject a further £26m of new equity to strengthen the group’s financial position.
Chairwoman Fabienne Viala said: “Despite ongoing challenging market conditions, the company has returned to profitability during 2017, while maintaining a high level of quality and service towards our clients.”
She said the turnaround was down to increased selectivity, with more recently won projects now contributing positively to operating profit and the outcome of a group-wide reorganisation plan and strategy that led to significant savings and high productivity.
