Skanska UK’s construction business reported an operating profit of £40m in 2014, slightly down from £41.9m in 2013 and £42.6m in 2012.
Revenue in 2014 was £1,340.5m, up from £1,216.3m in 2013 and £1,166m in 2012.
Consequently the operating margin was shaved from 3.4% to 3.0%.
UK president and CEO Mike Putnam said: “Our financial results throughout the recession have remained consistent, stable and at a good level.”
New orders booked in 2014 totalled £1,679m, which Mr Putnam described as “a robust pipeline of work”.
In the final quarter of 2014, Skanska secured a contract to upgrade Junction 30 of the M25, and was included on the Highways Agency’s £5bn collaborative delivery framework contract.
Skanska also began work on a number of significant construction projects, including the £250m Defence College at Worthy Down in Hampshire for the Ministry of Defence and the £95m Creechurch Place commercial development in London. Work also started on a £49.9m site-wide infrastructure contract at the North West Cambridge Development. In addition, Skanska’s facilities management business secured a £10 million-a-year deal with the Metropolitan Police.
Projects completed during the year included commercial developments at Moorgate Exchange and Bevis Marks in London, the western ticket hall at Crossrail’s Bond Street Station, phase two at St. Bartholomew’s Hospital in London and South Essex College.
Last year Skanska announced its intention to recruit an additional 2,000 people over three years. With more than 750 brought on board during 2014, this plan remains on course.
Mr Putnam said market conditions were improving: “I am positive about the future and the range of exciting projects starting this year, and I look forward to further building our presence and brand in the UK.”
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