Skanska UK today announces its results for the first six months of 2007. Revenue at £610.5 million shows an increase of 44 percent on that at the same period in 2006. Operating Income at £15.9 million is down compared to that in the first six-months of 2006, however in 2006 this included the exceptional gain from the financial closure and recovery of bid costs of the Barts & The London New Hospitals Redevelopment scheme.
First six months 2007 (£M)
Revenue - 610.5
Operating Income - 15.9
Order Backlog - 2259
Skanska UK today announces its results for the first six months of 2007. Revenue at £610.5 million shows an increase of 44 percent on that at the same period in 2006. Operating Income at £15.9 million is down compared to that in the first six-months of 2006, however in 2006 this included the exceptional gain from the financial closure and recovery of bid costs of the Barts & The London New Hospitals Redevelopment scheme.
David Fison, Chief Executive, Skanska UK Plc said "We are exactly where we want to be. Project performance is good which means our clients are happy, our supply chain is happy and we are happy. That in turn is delivering some excellent new awards and the quality of our future pipeline of work has never been better. This is totally attributable to our project teams, they are the people out there living the values associated with the Skanska brand and delivering on our projects and on our promises to our clients."
Operational Highlights for the first six months of 2007:
David Tydeman joined the board of Skanska UK Plc as Executive Vice President. David was most recently Chief Operating Officer of Morrison Plc and had previously held a number of key senior positions in organisations such as Cap Gemini Management Consultants and Rolls Royce/Vickers plc.
Skanska was honoured recently by the Considerate Constructors Scheme when it was presented with two awards as part of the Schemes 10th anniversary celebrations. The UK's most considerate contractor in the Civil Engineering Category and a second place award in the overall category of "The UK's Most Considerate Constructor", given to the highest performing companies in the UK.
In May, seven of Skanska UK's businesses were awarded RoSPA Gold Awards for achieving a very high level of performance, demonstrating well developed occupational health & safety management systems and culture, and outstanding control of risk. In addition, Skanska's Utilities operation was presented with the inaugural International Dilmun Environmental Award.
In June, Skanska's Piling and Ground Engineering team were honoured by Building magazine, bringing home the Specialist Contractors Safety Programme award in recognition of the excellent progress the company has made in developing an Incident and Injury Free Culture.
Construction
By combining its commercial construction and mechanical and electrical engineering expertise, Skanska secured a £68 million contract to design and construct a new eight-floor office development at 20 Gresham Street in the City of London for Hermes Real Estate. Set for completion in September 2008, the building will offer 21,000m2 of net letable office space.
Gresham Street was shortly followed by the award of a £50 million contract by Land Securities - Dashwood EC2, also in the City of London. Work includes the partial demolition of an existing 15-storey office building and the addition of a further four floors to provide over 20,000m2 of gross prime fully serviced office space and 676m2 of retail space.
The team, combining the Skanska skills in design, building, building services, piling, steel decking, ceilings & decorative plasterwork and utilities, officially topped out One Kingdom Street, PaddingtonCentral, London in June. Work on the £75 million project now continues towards completion in February 2008.
Work progresses well on the first phases of the Barts & The London New Hospitals redevelopment scheme. At the Royal London, demolition and piling are complete and slip forming for the three towers is progressing well. At Barts, main piling works, pile cap and basement slab construction are all in progress. The project has recently achieved one million man hours without a reportable accident.
Coventry - the Walsgrave PFI Hospital team have completed all main construction work for the new 1250-bed acute hospital and are now carrying out the car parking and landscaping works around the new facility.
Derby - work is progressing well on Phase 2 of the new acute hospital. When complete, at the end of 2008, the facility will provide 1159 beds and 35 operating theatres for the community it serves.
Nottinghamshire - construction and refurbishment work continues on the Central Nottinghamshire PFI Hospital scheme across three sites - Kings Mill Hospital, Mansfield Community Hospital and Newark General Hospital. The most recent milestone is the completion and occupation of a Facilities Management Building. The fitting out of The Diagnostic Treatment Centre is underway. All construction and refurbishment at the hospitals will be completed by 2011.
Bristol - work to deliver four new schools under the UK's first Building Schools for the Future Programme enters an exciting stage as the team prepares for the handover of the first school, Bristol Brunel Academy (formerly Speedwell), in time for the start of the new school term in September.
Scotland - work is well underway to construct seven new schools for Midlothian Council with the first school set to open in September and all schools being completed by the end of the year.
Infrastructure
At the beginning of 2007, Skanska in partnership with GrantRail was awarded a £39 million project by Transport for London to carry out major civil engineering works for the new Docklands Light Railway (DLR) extension to Stratford, known as Package 8.
This was followed last month, by the award of a further contract, Package 6, which includes the conversion of the former North London Line railway between Stratford International to Canning Town, upgrading existing stations to DLR standards. Work includes the construction of four new stations and the formation of a new DLR link between Stratford and Stratford International. The latest award is valued at £67 million, both schemes are part of DLR's Stratford International extension, expected to play a key role in transport plans for the 2012 Games.
Weymouth - Skanska received an ECI award from Dorset County Council to carry out the design and construction of the A354 Weymouth Relief Road, worth around £40 million.
Cumbria - work is progressing on the A66 Temple Sowerby bypass. The £23 million project will improve safety for the residents of Temple Sowerby and ease traffic flow through the village.
Kent - Skanska's team undertaking the A2 - Phase 2 Pepperhill to Cobham scheme have now completed 80 per cent of the first stage of main earthworks on the project. Work on two of the four bridges for the scheme is well underway with Marling Cross approximately 90 percent completed and Tollgate 70 percent complete. Completion of the scheme is scheduled for spring 2009.
On the M1 6a-10 widening project, being undertaken in joint venture with Balfour Beatty, approximately 40 percent of the project has now been completed. The latest milestone for the team has been the demolition of five bridges - an operation which has been carried out over the last six weeks under formal motorway closures and one that has been seen as a major success by all parties. Work now continues towards final completion of the scheme in December 2008.
Utilities, In December 2006, Skanska acquired "Brown Macs" and during the first half of 2007 they and the existing utilities operations have together been working to complete what has been a very successful integration process.
The combination of skills and expertise of the company's new utilities operation, producing revenue of around £300 million per annum, makes Skanska one of the largest utilities and infrastructure services providers in the UK.