Skanska maintains stable UK performance and strong order book
Skanska UK’s construction business recorded an operating profit of £24.8 million in the first nine months of 2015 as revenue remained largely unchanged at £1,031.1m.
Its operating margin was also unchanged from the first half of the year at 2.4 per cent. During this period, £1.299.5 million of orders were booked by Skanska UK.
Mike Putnam, Skanska UK’s president and CEO, said: “We are in a healthy and stable position. In a highly competitive marketplace we continue to deliver a steady operating margin that is at the higher end for the construction sector at this time.”
The third quarter saw a number of project wins and extensions, including a £32m contract with Gloucestershire County Council to upgrade 55,000 streetlights across the county. The upgrade is expected to save £22m in energy costs over 12 years and cut carbon emissions by an estimated 7,000 tonnes each year.
Skanska’s development business continues to build on its success. Following the sale of 66 Queen Square in Bristol, contracts have been exchanged on a 0.75 acre (4 hectare) site near to Temple Meads train station. The scheme will be Skanska’s next office-led commercial development in the city.
Several recently won major projects are currently in full mobilisation. These include the three AMP6 (Asset Management Programme) projects for Thames Water, Welsh Water and Anglian Water, worth a total of around £454m over five years.
“’A book-to-build’ ratio of 126 per cent shows we have a robust pipeline of work. We remain in a challenging contracting environment, but I believe we are on track for a solid 2015 and a firm foundation for profitable and sustainable growth in 2016,” said Putnam.
With its strong order book, Skanska is continuing to expand its workforce throughout the company.
“We have welcomed over 100 graduates and 75 apprentices and trainees as part of our 2015 intake,” Putnam said. “This demonstrates our clear commitment to provide opportunities for the next generation. It will also equip Skanska with the right people and the right skills in the future to deliver best quality, best value projects for our customers.”