Skanska shurgs off doubts over Barts and Royal London PFI to increase profit by more than 拢50m.
Skanska has reported profit growth of more than 拢50m in annual figures released this morning.
The Swedish contractor, which is waiting on a go-ahead for the Barts and Royal London PFI hospital scheme, increased pre-tax profit from 拢232m in 2004 to 拢284m in 2005.
Turnover also rose, up to 拢9.1bn in 2005 from 拢8.8bn the previous year.
Speaking at a press conference this morning, Skanska chief executive Stuart Graham said that the fiasco at Barts was not yet a major problem for the firm.
He said: "For Skanska, this is not a big negative since we are present in the educational field and there will be smaller (hospital) projects, and a few large ones."
Skanska also reported low UK construction volumes and problem contracts in the UK and US - including a disasterous gas import terminal at the Isle of Grain in Kent - saw cashflow drop from 拢290.2 million to 拢228.7 million.
Graham said: "We are turning away opportunities where the risk exceeds potential returns. We are also pushing our margins up. Our margin targets have cost us some business."
