People and Performance continues to deliver good results at Skanska UK

Press release 02/11/2006 00:00 CET

9 months 2006 £m 9 months 2005 £m % change
Revenue 650.0 524.4 +24
Operating Income 25.7 16.0 +61
Order backlog 2.1bn 1.2bn +75
Order Intake 1.5bn 600.0 +150

Skanska UK Plc today announces its results for the third quarter of 2006 ending September 30th.

At £25.7 million, for the nine-months to September 2006, the profits represent nearly £10m improvement over the same period in 2005. Order Backlog at £2.1 billion is a 75 per cent increase on that at the third quarter of 2005.

The Order Backlog includes a number of PFI schemes that have reached financial close during 2006 - Barts & The London New Hospitals Redevelopment, Midlothian Schools and Bristol Schools, the first contract under the UK’s Building Schools for the Future Programme. Backlog also includes three ECI road schemes, M1 Junctions 6a-10, A2 - Phase 2, Pepperhill to Cobham and Temple Sowerby.

At the start of the fourth quarter, news came in that Skanska, as part of an Alliance, had been chosen by National Grid as a preferred partner for one of six contracts to support the upgrading and renewal of the electricity transmission network across England and Wales . Skanska's partners are AREVA and Mott MacDonald and the Alliance is responsible for the South East. Skanska's share of the five-year contract is valued at around £100 million. As the results were published, it was also announced that Skanska had been appointed Preferred Bidder on the £170m Walsall hospitals PFI healthcare scheme.

Commenting, Chief Executive of Skanska UK, David Fison said: ”Great results. It’s our people that make the difference. They care about doing a great job and that’s showing through in work won and profits.”