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Leading the way in London’s Commercial Construction market – Skanska announces third quarter results

Press release 01/11/2007 00:00 CET

Q3 2007 £m Q3 2006 £m Percentage change
Revenue 339.6 226.1 50
Operating Income 8.8 6.3 41
Order backlog 2236 2149

Skanska UK Plc announces its results for the third quarter of 2007 in the week it was awarded Heron Tower, a 46 storey building, which will provide unrivalled panoramic views over London from its island site location on Bishopsgate.

Revenue at £339.6 million for the third quarter ending September 30th represents a 50 percent improvement on that at the same period last year. Operating income at £8.8 million has increased by some 41 percent compared to the third quarter of 2006.

Commenting, Chief Executive of Skanska UK, David Fison said: “Its all about continuous improvement. Sales up 50 percent and profit up 41 percent compared to same quarter last year is good, we are performing consistently but the game doesn’t change. We need to keep driving project performance – that means integrating our project teams better, helping our people give of their best and improving our procurement and design management.”

The third quarter of 2007 saw Skanska receive its fourth commercial construction project order in London this year – The Walbrook, a £150 million office and retail development for Minerva in Cannon Street. The award of Heron Tower will be booked in the fourth quarter of 2007.

Also during the quarter, in Bristol, the UK’s first school to be completed under the Government’s Building School’s for the Future Programme, Bristol Brunel Academy opened its doors to staff and pupils – an achievement which was officially marked by Prime Minister Gordon Brown.

Meanwhile in Stratford, work progresses well on two schemes Skanska is undertaking in partnership with GrantRail, DLR Packages 6 and 8, part of Dockland Light Railway’s £238 million Stratford International extension, which will play a key role in transport plans for the 2012 Games.

Skanska UK are now actively marketing ModernaHus, a highly sustainable, economically viable MMC solution to residential accommodation. With the help of its Swedish colleagues, which have been involved in the construction of ModernaHus in Scandinavia for a number of years, Skanska has developed the product to meet UK requirements and following full Building Research Establishment (BRE) certification and Code for Sustainable Homes pre-assessment of Level 3 to 6, is now in discussions with a number of potential partners nationwide regarding UK developments.