Ferrovial Agroman battles to stem UK losses

Aaron Morby 5 years ago
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The UK operation of Spanish civil engineering contractor Ferrovial Agroman is still fighting to curb losses.

Latest published accounts for the business, which had contracts on Crossrail and the Northern Line Tube extension and is presently working on Thames Tideway and HS2, show the firm suffered a £13m loss last year.

The result is an improvement on 2017 when the Agroman business in the UK was rocked by a £30m loss due to problem contracts.

Finance director Andres Blanco Diez, said: “The losses are a result of the performance of specific highways and water projects. Aviation and rail projects have performed to expectation generating the positive margins anticipated at their respective stage of completion.”

He added: “The company’s financial goals for 2019 and beyond continue to be to grow the order book and net cash balance, increase revenue and improve operating margin.”

At year-end Agroman’s UK order book had increased a little to £691m, due to client-approved changes and additional works instructed on existing contracts.

Revenue in 2018 fell back 11% to £296m, made up of £121m from rail work, £94m in water and £56m in aviation.

The business presently employs just over 450 staff.

The result marks another tough year for parent group Ferrovial in the UK. It is trying to sell its services contractor, Amey, after several years of losses. Last month Ferrovial revealed it had slashed the book value of the firm by £660m to just £88m, due to changing sentiment in the UK services market.

Amey is embroiled in a major row with Birmingham City Council over its £2.7bn highways maintenance contract.

 

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