Skanska UK Plc – Third Quarter Results: to 30th September 2004

Press release 29/10/2004 00:00 CET

Skanska UK Plc (formerly Skanska Construction Group Limited) today announces its results for the third quarter to the period 30th September 2004.

The results show that Net Sales for the year to date are £647.6 million, producing a 2.85% margin compared with 1.66% for the same period in 2003. Order backlog at £1 billion, does not include those schemes which are at preferred bidder stage. These amount to £1.5 billion. Earnings Before Interest, Tax and Amortisation (EBITA) at £4.8 million for the third quarter takes the cumulative figure for the year to September to £18.4 million, an increase of 65% on the same period in 2003.

David Fison, Chief Executive, Skanska UK Plc said, “We have concentrated hard on getting an integrated approach across the whole of Skanska UK to the way we do business. The effect of that drive can now be seen both in our improving performance for our clients and the value we are creating for our shareholders.”

Operational highlights for Skanska UK Plc during the nine-month period:

- In London, Skanska and Moor House Limited Partnership topped out the City’s latest landmark office development. Moor House, a 19-storey office building is due for completion during the fourth quarter and is Skanska’s second high-profile London landmark following the successful completion of 30 St Mary Axe.

- Also in London, King's College PFI Hospital was completed ten weeks ahead of schedule, which enabled the Trust to transfer services early.

- In Kent, Skanska in consortium with Mill Group achieved financial close on a £36 million PFI schools project for the London Borough of Bexley. The scheme includes the design, build, finance and operation of two secondary schools, Bexleyheath and Welling.

- In Nottinghamshire, Skanska in consortium with Innisfree was named preferred bidder for the £265 million 30-year PFI scheme to design, build, finance and operate a major hospital development for Sherwood Forest Hospitals NHS Trust and Mansfield District Primary Care Trust.

- In Woodbridge, Suffolk, work officially began on an £80 million contract to design and build a new barracks complex under the Defence Estates’ Prime Contracting Initiative and is due for completion in 2006. The financial close of Woodbridge was achieved as Skanska successfully completed the £352 million PFI redevelopment and modernisation scheme of the Ministry of Defence’s Headquarters in Whitehall, London.

- Skanska’s utility portfolio continues to grow with the successful renewal of BT’s framework agreement covering its Yorkshire & Humber and Thames Valley regions. The framework is for a period of four-years and is valued at £200 million.

- Skanska continues its success in PFI achieving 1st place for the second year running in an Industry PFI league table and winning the prestigious “PFI Contractor of the Year” Award.

- As results are announced the fourth-quarter began on a high-note with Skanska being awarded a £150 million Alliance by Anglian Water as part of its capital programme.

A copy of Skanska AB’s group results, also released today, can be found at www.skanska.com.