In 2013 Skanska UK had operating profit of £41.9m (2012: £42.6m) for its construction business on revenue of £1,216.3m (2012: £1,166m).
Though the margin is down a fraction, the latest set of results mean that Skanska UK has secured operating margins of at least 3% for the last four years, despite the recession.
On Friday we reported on Skanska’s global results for 2103. Today we review the Swedish company’s UK performance for 2013.
During the year Skanska UK picked up more than £1bn of new work including, in the final quarter, a £128.5m contract to upgrade Junction 19 of the M1 in Rugby and a £34m project to build a new prison block at HMP Thameside in south London.
The company also expanded its workforce by 1,200 people in 2013 through the acquisition of Atkins’ highways services business.
Major projects completed during the year included RAF Wyton in Cambridgeshire, HMP Grampian in Scotland and Brent Civic Centre in London.
It began construction on its first commercial development projects in the UK: 66 Queen Square in Bristol, The Monument Building in central London, and Bentley Works in South Yorkshire.
Skanska also made progress in the water sector last year. Working in joint venture, the company secured the Thames Water AMP6 five-year framework, worth approximately £80m a year to Skanska from 2015.
UK president and CEO Mike Putnam said: “The market is improving and we have secured or been named preferred bidder on a significant amount of work. When we take this into account, we are in a strong position going forward.”
He added: “We have weathered the economic recession well, securing strong results throughout the last five years. We are now looking forward to a period of planned growth and expansion thanks to the strategic choices made as part of our business plan and growth in our chosen sectors. There are major opportunities on the horizon and I am very optimistic about the future.”
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