Vinci UK profit soars to £39m as old disputes settled

Aaron Morby 13 years ago
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Vinci has settled several long standing Taylor Woodrow contract disputes boosting pre-tax profits in the UK to £39.1m compared to £15m last time.

The deals brought in exceptional profit gains of £8m, although turnover fell 12% to come in at just over £1bn as the market tightened.

Chairman and chief executive John Stanion said: “The private sector is showing tangible signs of recovery and investment in retail and in the south east commercial building market is looking more encouraging.”

But he warned: “I anticipate though that market conditions will not improve much in 2011 and we face testing times for some time yet as the spending cuts feed through.”

Despite a tough year savings from integrating contracting businesses slashed overheads 13% to £83m.

The firm now boasts a group wide operating margin in the UK of 2.8% helped by a strong performance from civil engineering.

Vinci has also consolidated the building division into three operating regions North, South and Midlands, and Wales.

    Vinci UK divisions

    Building: profit £13.2m (£4.4m), turnover £546m (£632m)

    Civils: profit £21.8m (13.6m), turnover £179m (£237m)

    FM: profit £5.1m (£1.8m), turnover £220m (£210m)

    Other: loss -£1.0m (-£4.4m), turnover £81m (£83m)

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