Firm adds cost of complying with new safety legislation hits bottom line
Bouygues said rising inflation following the war in Ukraine, availability of labour and the cost of complying with new industry legislation sent its UK business tumbling into the red last year.
In accounts signed off in March but only filed at Companies House this week, the firm said it racked up a 拢42m pre-tax loss in 2022 from an 拢835,000 profit last time.
The firm, which is working on the first phase of the HS2 railway in the Chilterns, the Hinkley Point C nuclear power station scheme in Somerset and a new eye hospital in London, said it had also been hit by 鈥減ost completion liabilities arising from recent legislative changes relating to building safety鈥�.
It added it had also been affected by several subcontractor failures on its jobs. 鈥淐ost forecasts were revised accordingly,鈥� it said. Turnover last year fell 21% to 拢383m.
The firm said contract provisions at the end of last year totalled 拢5.3m from 拢4.3m last time which in a note it explained 鈥渞elate to expected losses to completion on construction contracts in progress鈥�.
A 拢1m restructuring cost was also made on top of 2021鈥檚 拢1.1m restructuring cost, which Bouygues said 鈥渞elates to further streamlining of the company鈥檚 business unit organisation鈥�.
The firm has now reorganised into three business units in the UK, under a rejig which has seen chief executive Rob Bradley leave the business. Documents filed at Companies House show he went at the beginning of this month and has been replaced by chair and UK country director Fabienne Viala as chief executive.
Bouygues, which is part of the 拢39bn turnover French giant, said its cash position at the year-end was 拢174m.
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