In 2023 Bouygues UK made a pre-tax loss of £62.1m (2022: £41.9m) on turnover down 15% at £325.6m (2022: £382.6m).
The operating loss in 2023 was more than double what it was in 2022, reaching £77.1m (2022: £30.8m loss).
“The reduction in turnover reflects the slowdown in contract awards as a result of market conditions,” said finance director Thibaut Roux. “The loss for the year arose as a result of cost increases due to subcontractor performance, availability of labour, the conflicts in Ukraine and the Middle East as well as the continuing impact of post completion liabilities relating to building safety.”
He continued: “Subcontractors continued to be impacted during the year in regard to delivery of services as a result of challenging market conditions There were a small number of failures of subcontractors working for the company during the year. Actions were implemented to ensure that works were able to continue with cost forecasts being revised accordingly.”
The 2023 accounts for Bouygues (UK) Ltd show nearly £116m of customer warranty provisions, expected to be used over the next 12 years. This primarily relates to post-Grenfell fire safety retrofit work. Bouygues (UK) spent £12m on warranty work last year and a similar amount in 2022.
The accounts also show £5.3m contract provisions for expected losses on work in progress.
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