Revenue for the year was £1,166.2m, down 4.5% on 2011’s £1,222.8m. However, operating income was up 4.2% to £42.1m, representing an operating margin of 3.6%. The margin in 2011 was 3.3% by comparison.
The order book grew to £1,076m by year-end, 23% ahead over the year.
More than £1bn of new orders was taken in December, although less than half was booked in 2012.
Contract awards in December included: a £1.6bn gas distribution strategic partnership contract with National Grid, in 50/50 joint venture with Morrison Utility Services; and a £320m contract with the Highways Agency for the later upgraded sections of the M25, in 50/50 joint venture with Balfour Beatty.
President and CEO Mike Putnam said: “Today’s announcement of these strong results illustrates Skanska’s drive to maintain a consistent performance, despite the economic backdrop. This is evidence of the robust focus we maintain on managing our operations and risks across Skanska UK. Revenue for the year was in line with our expectations, and I am pleased that we have delivered an increase in operating margin to 3.6%.
“I am particularly delighted to see the significant increase in our order backlog towards the end of last year, despite the current recession in the construction market and the limited number of public-sector projects. We will, however, continue to be discerning about the choice of future projects and investments we take on, always focusing on meeting the expectations of our clients and shareholders.
“This is the fourth consecutive year of strong results for Skanska UK, during which time we have consistently achieved or exceeded the operating income in our 2015 Business Plan.
“In 2012, we also made good progress in our strategic profitable growth areas. We launched our residential homes offering, purchased land for commercial development and signed a joint-venture agreement to deliver concrete gravity foundations for offshore wind turbines. In addition, we were named as one of 13 companies on the Mayor of London’s RE:FIT framework to improve the energy efficiency of public buildings in the capital.”
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