Skanska UK Plc today announces its results for the first quarter of 2005 ending March 31st.
At £5.50 million, the profits represent a solid 3.4 per cent of sales, similar to that at the same period in 2004 of 3.3 per cent. Sales are down compared with those at the same period 2004, however, the order book at £1.24 billion is up 35 per cent and does not included those projects at preferred bidder stage. Current order book and the financial close of these preferred bidder schemes during 2005 would see Skanska’s order book double at the end of the 2005 financial year compared to that at the end of 2004.
David Fison, Chief Executive, Skanska UK Plc said, “Its good to see our strategy delivering and both profits and orders moving ahead. We need to make three per cent “plus” in order to reinvest in our business enabling us to drive the improvements we require to become the UK’s best performing contractor. We have achieved this in safety and moved from just “one of the group” to the “leader of the pack.” We are now doing this in our performance.
”No client has ever said to me that they employ Skanska just because we are big. They employ us because they know Skanska will perform and that we are improving year on year and that is exactly what our results show.”
Highlights for Skanska UK Plc during first quarter 2005: -
- As the results were announced, Skanska UK was, for the second year running, named PFI Contractor of the year at the Building Awards.
- Skanska is leading the pack in its Health & Safety performance – independently audited results show its accident incident rate has dropped from 10.8 (31st March 2004) to 5.6* (31st March 2005). Skanska is now driving zero harm on all its sites with the launch of safety @ Skanska, a near miss reporting system to ultimately eliminate accidents on its sites, whilst at the same time, donating money to Mencap.
*Skanska UK’s health and safety accident incident rate is calculated using 1000 persons at risk. For example - accidents x 1000 divided by number of people at risk.
- During the quarter, two senior internal appointments were made –
- David Myers, was appointed managing director of Skanska’s Mechanical, Electrical & Hard FM operating unit, taking responsibility for the growth and development of this successful business to continue its market leading position.
- Keith Marr, was appointed managing director of Skanska’s in-house design operating unit, taking responsibility for the development of this business to ensure its continued value adding services to all Skanska UK operating units.
- In Kent, Skanska successfully completed the first phase of its £36 million PFI contract to design, build, finance and operate two new schools for the London Borough of Bexley, with the handover of the new sports hall at Welling School.
- In Derby, Skanska topped out the first major phase of its £333 million PFI redevelopment of Derby City General Hospital – Kings Treatment Centre, a new clinical facility and the first half of the main acute building for the Derby Hospitals NHS Foundation Trust. Work now continues towards the completion of the main acute hospital building, due for handover in Spring 2006.
Civil Engineering & Specialist Businesses
The first quarter of 2005 saw Skanska awarded a hat trick by the Highways Agency, under its Early Contractor Involvement programme.
Firstly the company successfully secured the £241 million M1 junctions 6a – 10 in joint venture. This was followed by the award of the £23 million Temple Sowerby Bypass scheme in Cumbria and towards the end of the first quarter Skanska secured its third highways scheme – M1 Junction 19 interchange improvements near Rugby.
Specialist Businesses – Skanska UK’s specialist business continue to perform well, leading the industry in the markets in which they operate and underpinning the success of Skanska UK’s ability in both PFI and Civil Engineering to offer total solutions.
- During the first quarter, Skanska’s utilities operating unit successfully secured an alliance contract to replace some 3,200 kilometres of gas distribution mains in the North London area. Skanska will carry out the work, which is valued at around £400 million in joint venture under an eight-year Alliance for Transco Plc, a subsidiary of National Grid Transco (NGT).
- In London – Skanska has reached an important milestone on its commercial and retail development for Southpoint General with the completion of the structural steel frame, and the commencement of basement services installations – three months ahead of schedule. Work now continues for the completion of the total scheme in Summer 2006.
- During the first quarter, Skanska has established a dedicated team combining the skills of both construction and mechanical and electrical specialist for the design, construction and servicing of data centres and infrastructure related projects.
A copy of Skanska AB’s results, also released today, can be found at www.skanska.com.