Contractor posts dip in profit but continues to capture market share
Skanska UK鈥檚 construction profit margin dipped below 3% last year, in otherwise steady financial results for the calendar year.
In group results posted by Skanska鈥檚 Swedish parent company yesterday, the firm鈥檚 UK construction division posted a reduced operating margin of 2.4%, down from 3%, while operating profit dipped 2% to 拢36.3m, down from 拢37.2m.
However, Skanska UK鈥檚 construction division continued to capture market share, with revenue up 21% to 拢1.5bn, up from 拢1.2bn. The division also booked marginally more orders in 2015 than the previous year, 拢1.57bn compared to 拢1.56bn.
Mike Putnam (pictured), Skanska UK鈥檚 president and chief executive, said: 鈥淚n a tough and extremely competitive environment, I am pleased to report a year of steady performance across the business.鈥�
Skanska Group said it expected trading across both its key UK construction markets of non-residential buildings and civils to improve this year. By the end of the year Skanska UK was using level two BIM on all its projects, the firm said.
Overall the group posted an increase in revenue and operating profit, with revenue up 7% to 153bn SEK (拢12.5bn), up from 143.3bn SEK (拢11.7bn), while operating profit increased 17% to 6.3bn SEK (拢514.5m), up from 5.4bn SEK (拢442.4m).
Skanska UK began work on a number of major projects in 2015, including 拢140m New Papworth Hospital in Cambridge and three AMP6 projects for Thames Water worth a combined 拢454m.
The firm completed major jobs including 拢118m London office development One and Two New Ludgate for Land Securities, a 拢34m extension to Thameside prison, and seven new schools in Bristol.
Putnam said: 鈥�2015 wasn鈥檛 just about winning work, it was also about continuing to deliver our current projects to the highest standards.
鈥淎 tremendous example is the M1 Junction 19 project for Highways England, where the M1 meets the M6 and the A14. Several milestones have been reached early and, in one case, three months ahead of schedule. It means that drivers who have had to negotiate one of the most complex junctions in the country are starting to see a significant change for the better.鈥�
He added: 鈥淪ustainable growth is our goal and we will deliver that in line with our purpose to build for a better society.鈥�
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