Revenue for the year at £1,166.2 million shows a slight reduction on that of 2011. However, operating income of £42.1 million, equating to an operating margin of 3.6%, is up on last year. Order bookings at £1,076 million show an increase of 23% on 2011.
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2012 ended on a particularly high note, with Skanska UK winning more than £1 billion of new work in December alone. In accordance with normal policy, £433 million of this was booked in 2012, with the remaining £630 million being booked in the following years. Awards in December included:
- A £1.6 billion Gas Distribution Strategic Partnership contract with National Grid, in 50/50 joint venture with Morrison Utility Services.
- A £320 million contract with the Highways Agency for the later upgraded sections of the M25, in 50/50 joint venture with Balfour Beatty.
Mike Putnam, President and CEO, Skanska UK, 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.”
Clich here to read Skanska's global results.