Skanska UK – first quarter results 2007

Press release 27/04/2007 00:00 CET

Results continue to deliver strong steady performance with Revenue and Operating Income showing increases of 45 percent and 34.5 percent respectively on that at the same period in 2006.

Q1 2007 Q1 2006 Percentage
£m £m change

Revenue 283.6 195.4 +45.1%
Operating income 7.4 5.5 +34.5%
Order backlog 2337.3 1225.3 +91%

Order Backlog, in excess of £2.3 billion, is up 91 percent on that at the end of Quarter 1 2006. This is a result of the good order book coming into 2007 which included the award of a number of schemes during last year, including Barts & The London New Hospital Redevelopment, The UK’s first Building Schools for the Future programme in Bristol, Three ECI Road schemes, M1 Junctions 6a-10, A2 Phase 2, Pepperhill to Cobham and Temple Sowerby, as well as two commercial construction schemes in London, One Kingdom Street at Paddington Central for Development Securities and 311-318 High Holborn for Ebble Developments.

David Fison, Chief Executive, Skanska UK Plc said, “I am very pleased with today’s results. Overall our profits and sales are up 45 percent in the quarter and all our operations are performing as planned.

“A real highlight for me is how quickly McNicholas plc has integrated into the Skanska family. We knew they were the right match for us and just three months since making the acquisition, the two teams have become one. We have some great people in the business and I am delighted with the enthusiasm I have seen right across Skanska UK to make this a success.”

During the first quarter of 2007, Skanska has been awarded a number of projects, including a £40 million contract by Transport for London to carry out major civil engineering works for the new Docklands Light Railway (DLR) extension to Stratford International Station. A £64 million project from Greycoat Crown Place Partnership for the construction of a commercial office development at 30 Crown Place, London shortly followed by the award of commercial office development for Land Securities – Dashwood EC2, a £50 million scheme near Old Broad Street in the City of London.

In February, Skanska announced the appointment of David Tydeman to the board of Skanska UK Plc as Executive Vice President. David was most recently Chief Operating Officer of Morrison Plc and has held a number of key senior positions in organisations such as Cap Gemini Management Consultants and Rolls Royce/Vickers Plc.

Skanska UK also announces today that Neil Moore has been appointed European Safety and Health Co-ordinator for Skanska AB.

Neil is succeeded by Ben Legg who has been promoted to Director of Environment, Health and Safety for Skanska UK. Ben joined Skanska in 1999 as Project Safety Manager. In 2001, he was appointed Company Health and Safety Manager of the Building business and in 2003 took on the same role in Skanska UK’s PFI/PPP Operating Unit.

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