Problems on Nottingham tram project contributed to firm鈥檚 major pre-tax loss
Vinci鈥檚 UK division has suffered a colossal 拢217m pre-tax loss for 2014 due to problem contracts in its building and civils divisions.
In its results for the year ending 31 December 2014, the firm said its work on the 拢570m Nottingham tram project experienced 鈥渕ajor issues鈥�, leading to an operating loss of 拢154m in its civils division.
In accounts filed at Companies House, Vinci said it will enter 鈥渃omplex discussions鈥� with client Nottingham council and joint venture partner Alstom to reach a financial settlement on the contract.
It also said 鈥渁 number of contracts have encountered issues鈥� in its building division, which has 鈥渞esulted in ongoing negotiations on a number of contracts,鈥� causing the division to record a 拢32m loss.
Revenue at the firm for 2014 stood at 拢1.02bn, down a fifth from 拢1.26bn the previous year.
Vinci said its building division will continue to pursue opportunities in its traditional health and education sectors, with its civils division continuing to focus its operations on the rail, road and energy markets.
In November 好色先生TV revealed that delays on the Nottingham project were the main reason for 鈥渟ignificant losses鈥� at Vinci鈥檚 UK construction business for the first half of 2014, with a spokesperson for the firm confirming the project was 鈥渕ainly鈥� responsible for the losses in the six months to June 2014.
The Nottingham tram scheme was the second major Vinci project that month which emerged as facing delays.
As 好色先生TV reported in earlier November, Vinci鈥檚 拢179m upgrade to one of Gatwick Airport鈥檚 piers 鈥� the biggest construction project at the airport 鈥� had been subject to 鈥減roject delays and commercial challenge鈥�.
In February this year, France-based Vinci鈥檚 global construction business revealed a 44% fall in construction profit for the 2014 calendar year, down from 鈧�680m (拢505m) in 2013 to 鈧�380m (拢282m) in 2014, with revenue falling 8.1% from 鈧�16.8bn (拢12.5bn) in 2013 to 鈧�15.4bn (拢11.4bn) last year.
It blamed the drop partly on 鈥淯K difficulties鈥� and a deteriorating French market.
No comments yet