Firm also saw its operating margin fall slightly on the back of a 鈥渃hallenging鈥� environment
Skanska鈥檚 UK business has reported a 44% drop in pre-tax profit for last year.
The firm, in a document filed at Companies House, reported a pre-tax profit of 拢23.6m for 2016, down from 拢42.1m in 2015. Revenue increased 14.3% from 拢1.4bn to 拢1.6bn.
The contractor, which was replaced on phase two of the redevelopment of Battersea Power Station during the summer, said its operating margin had fallen 0.1% to 1.4% due to the 鈥渃hallenging business environment鈥� and that it had added another layer of governance to its bidding processes, as well as a system to 鈥渂etter鈥� monitor the performance of large projects.
Skanska鈥檚 Swedish parent company in July announced writedowns on its UK and US activities totalling SEK780m (拢81.5m), blaming delays to projects which resulted in cost overruns.
The firm added that its new chief executive, Gregor Craig, who replaced Mike Putnam in May, was 鈥渁ctively addressing the issues around these writedowns鈥�.
Skanska added that the markets in which it operates in the UK had been impacted by Brexit and that office and warehouse sectors were 鈥渟luggish鈥�.
In particular, the firm said the commercial sector in London had been slow but what activity there had been was being supported by Chinese and Asian investment.
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