Skanska UK’s business remains steady through first half of 2016

Press release 22/07/2016 09:00 CET

The revenue from Skanska UK’s construction business in the first six months of 2016 was £836 million, a 24 per cent increase on the same period a year ago. Operating income was £16.5 million, which equates to an operating margin of 2.0 per cent.

Skanska recorded a number of contract wins, extensions and framework successes across its construction and services operations. These included:

  • A £45 million contract to build the Copyright Building in the West End of London;
  • A contract awarded by Network Rail for the Northern Hub project in Manchester, worth in excess of £74 million to Skanska;
  • The design and construction of a 5km tunnel underneath the river Humber for National Grid, worth £40 million to Skanska; 
  • Barts Health NHS Trust extension of Skanska’s facilities management contract to provide a waste management service until 2021;
  • A new highways maintenance contract award in North Somerset and appointments to frameworks in Hampshire and West Sussex, which build on and consolidate Skanska’s highways services strength in south and south-west England.

Additionally, The Monument Building in the City of London was completed two weeks early; Skanska successfully completed its 10-year modernisation project to redevelop Britain’s oldest hospital, St Bartholomew’s, in central London; and the company began the maintenance phase on its Gloucestershire County Council street lighting contract, which also includes the installation of 55,00 new LED lamps by 2018.

Furthermore, Skanska continues to work on a number of schemes that are at preferred bidder or preconstruction services stages.

“Despite a tough contracting environment and with an uncertain future caused by the EU referendum, we have a strong order book and pipeline of work,” said Mike Putnam, Skanska UK’s President and CEO. “We have also maintained a sound and stable operating margin throughout the first half of 2016. 

“The financial crisis and recession showed that Skanska has a well-honed capability to manage through external change. We will continue to take a measured and calm leadership approach to our business as the picture following Britain’s decision to leave the EU becomes clearer.

“While the EU referendum result has created some uncertainty in our sector, we have seen little impact on our UK business to date. We have a wide portfolio of operations across public, regulated and private sectors that will provide diversity and resilience. We will continue to monitor the situation carefully and work very closely with all our customers, delivering against our commitments.”