Hochtief (UK) Construction made a pre-tax loss of £3.2m in the year to 31st December 2016 (2015: £918,000 profit).
Turnover increased by 19% from £130m in 2015 to £155m in 2016.
Finance director Christof Brixel attributed the loss to “the negative results of a small minority of projects”.
Hochtief’s German parent company injected £10m equity into its UK subsidiary during the year to strengthen the balance sheet as a result of increased pension deficit and to facilitate growth.
Hochtief’s major projects during the year included the £32m Broughton Bypass in Lancashire, which it started in January 2016 and completed in October 2017, some six months later than originally anticipated.
It was also a member of the Forth Crossing Bridge Constructors (FCBC) consortium that built the £1.3bn Queensferry Crossing, which opened in September 2017, also several months late, depending on which completion date is taken. That is likely to have been costly. Fellow FCBC consortium member Galliford Try set aside £98m earlier this year to cover one-off project losses, of which 80% was attributed to the Queensferry Crossing and the Aberdeen Western Peripheral Route. [See our previous report here.]