Skanska UK reports positive results for first quarter

Press release 07/05/2013 08:00 CET

Skanska UK has delivered a positive start to 2013, reporting revenue of just under £260 million and operating income of £7.5 million for the first three months of the year.

This performance equates to an operating margin just shy of 3 per cent. “This is a very credible performance given the prolonged recession facing the construction industry,” acknowledged President and CEO Mike Putnam. “We are well on track to achieve our financial targets for the year.”

Commenting on the company’s pipeline of work, Putnam said: “Although our reported order bookings for the first quarter of almost £170 million are behind expectations, we have a healthy pipeline of future opportunities.”

Skanska announced its acquisition of Atkins Highways Services in February, which is expected to complete by the end of the second quarter and will boost its workforce by 1,250 people.

In the quarter, the company reported its seventh contract for Crossrail, working with Costain to deliver the £110 million station at Bond Street. Also secured was 100 Cheapside, an 18-month contract to demolish and construct a ten-storey commercial building in the City of London.

During this period, Skanska started work on the £1.6 billion gas infrastructure replacement project for National Grid, working in joint venture with Morrison Utility Services. “This involved the mobilisation of more than 3,000 people within a matter of weeks. We are now up and running, delivering works in the east of England and north London,” said Putnam.

Skanska also started work on the £321 million later upgraded sections of the M25 during the quarter. Working with Balfour Beatty, the company is upgrading two sections of the M25 to managed motorway.