Skanska UK Plc today announces its results for the year ending December 31st 2005.
Revenue for the year at £793 million is slightly down at the same period for 2004 at £820 million however profits are up from £22.1 million in 2004 to £25.5 million producing a margin of 3.2 percent.
Order Intake at £1 billion is up on the previous year as is Order Backlog, which is in excess of £1.2 billion and does not include those schemes at preferred bidder stage, which amount to approximately £1.3 billion.
David Fison, Chief Executive, Skanska UK Plc said, "Nine months ago I said we need to make three percent plus in order to reinvest in our business enabling us to drive the improvement we require to become the UK's best performing contractor.
"You can see from our results, we are delivering exactly "what it says on the tin" and that is just what we intend to go on doing for the coming year. It's what our clients and shareholders have come to expect from us and by doing this we are delivering on those expectations."
Operational highlights for Skanska UK Plc during 2005:
During 2005, four key board appointments were made within Skanska UK.
- Nick Pollard joined the main board of Skanska UK. As a Board member he is tasked to maximise the success of Skanska UK overall and have specific responsibilities for PFI/PPP and associated markets.
- Rob Shed, was appointed managing director of Skanska UK's Integrated Projects Operating Unit, taking responsibility for maintaining Skanska's market leading position in PFI and PPP.
- David Myers, was appointed managing director of Skanska's Mechanical, Electrical & Hard FM Operating Unit, taking responsibility for the growth and development of this successful business to continue its industry leading position.
- Keith Marr, was appointed managing director of Skanska's in-house design Operating Unit, leading the development of this business to ensure its continued value adding services to all Skanska UK Operating Units.
- Skanska UK's performance continued to receive external praise with the company receiving a number of significant industry awards for both project performance and business processes:
- PFI/PPP Contractor of the Year - Building Magazine
- Best Private Sector Consortium - PublicPrivateFinance Awards
- Best Operational Defence Project - MOD Whitehall - PublicPrivateFinance Awards
- Best Building Contractors Safety Awards - Building Magazine
- Gold Award from the Association of Interior Specialists for work at Lakeside Shopping Centre
- Considerate Constructors Scheme's National Gold Award for the Selby Bypass Project, Derby and Coventry PFI Hospitals Projects and a Silver Award for its work at Logford House.
- The George Gibby Price from the Institution of Civil Engineers for its work at Port Talbot in South Wales.
- The ICE Brunel Medal for excellence in ground engineering at Keadby Lock
- Best Piling Specialist of the Year - Building Magazine
- Bill Brock - named a Construction Manager of the Year Gold Medal winner by the CIOB for his management of Skanska's Radisson SAS Hotel project at Stansted Airport
PFI/PPP
- In Derby, Skanska handed over the first completed building at its £333 million PFI Hospital scheme - the refurbished and extended pharmacy building. This was followed by the topping out of the first phase of the 95,000m2 main acute facility.
- In Suffolk, Skanska's latest scheme for Defence Estates, RAF Woodbridge, was named a Demonstration Project for Constructing Excellence in the Built Environment. The £82 million project continues towards completion in Spring this year, with seven buildings already handed over.
- In Kent, Skanska completed the construction of two new secondary schools for the London Borough of Bexley - a 2100-place school at Bexleyheath and a 1500-place school at Welling under a £36 million PFI scheme.
- In Coventry, Skanska's landmark PFI healthcare scheme continues to progress towards completion, with 11 phases handed over to date, the latest being the new Women and Children's Centre. The team are now working towards the completion of the hospital clinical buildings during Summer 2006.
- In Nottinghamshire, Skanska continued its industry-leading position in PFI healthcare with the Financial Close of a £300 million hospitals scheme. Skanska, in consortium with Innisfree will design, construct, finance and operate King's Mill and Mansfield Community Hospitals and undertake facilities management at Newark General Hospital during construction and over a 32-year concession period.
- In Scotland, Skanska in consortium with The PFI Infrastructure Company was selected for a 30-year, £70 million PPP scheme to design, construct, finance and operate eight new schools for Midlothian Council.
- Also in Scotland, Skanska continues its successful working relationship with the Scottish Prison Service with a £55 million contract extension for the design and construction of new houseblocks and associated accommodation at HMP Glenochil and HMYOI Polmont.
- In Bristol, Skanska was appointed Preferred Bidder on a £113 million education scheme for Bristol City Council - the UK's first under the Government's Building Schools for the Future initiative which will see the design, construction, finance and operation of four schools.
Civil Engineering & Specialist Business
- During the year, Skanska secured a hat-trick of contracts from the Highways Agency under its Early Contractor Involvement (ECI) initiative.
- In the South East, the company was awarded a £294 million project for the widening of the M1 motorway between junctions 6a-10 (in joint venture with Balfour Beatty).
- The second ECI awarded to Skanska is the £119 million M1 Junction 19 interchange improvements near Rugby
- In Cumbria, Skanska was awarded the £29.5 million A66 Temple Sowerby bypass extension.
- In Scotland, Skanska was awarded the £6 million contract to replace Harthope Viaduct, South Lanarkshire. The new structure is currently being erected alongside the existing viaduct and will be slid into position during a five-day possession of the West Coast Main Line during Easter 2006.
- Skanska UK's specialist businesses continue to perform well, leading the market in piling and ground engineering, ceilings and decorative plasterwork and steel decking.
Utilities
- 2005 saw Skanska expand its utility portfolio into the Gas sector with the successful award of a £400 million contract in joint venture with McNicholas Plc. Under the contract, Skanska and McNicholas have formed an Alliance with National Grid and are undertaking the replacement of 3,200km of gas distribution mains across North London.
Construction
- In London, Skanska reached a series of major milestones on its latest landmark building, Palestra, currently under construction for Southpoint General Partner on the South Bank. Topping out took place in Summer 2005, followed by the start of the basement services installation three months ahead of schedule.
- Also in London, work is progressing towards the completion of a new headquarters for The Crown Estate, on Regent Street which topped out in May 2005.
- 2005 saw Skanska established a dedicated team for the design, construction and servicing of data centres and resilient infrastructure schemes. This team draws on the expertise of both its construction and mechanical and electrical operating units into one integrated team.
A copy of Skanska AB's results, also released today, can be found at www.skanska.com.
ENDS