Contractor seeks more strategic frameworks and higher-value project work
Vinci UK is targeting higher value project work and frameworks after posting a 23% drop in pre-tax profit.
The contractor said greater competition and lower margins on jobs under 拢5m during 2012 had prompted the rethink.
The firm posted unchanged revenue of 拢1.1bn for the year ended 31 December 2012 and pre-tax profit of 拢15.3m, down from 拢19.8m the previous year.
Vinci UK streamlined its building business during the year from four to two regions, in the North and the South.
The firm鈥檚 building business reported a 拢6.6m loss after a 拢2m operating loss the previous year. Its civil engineering and facilities businesses reported a 拢11.7m and 拢7.1m operation profit respectively.
The firm is targeting growth in its international business, which operates in the Middle East.
In its building business, Vinci saw the greatest overall decline in activity in the retail sector, while healthcare activity also declined.
There was strong activity in the education sector in the South-west and Wales and growth in the industrial sector in the Midlands.
In the North-west and North-east Vinci targeted more private sector work as public sector work declined, while the firm targeted larger projects in the south.
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