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Tue April 20 2021

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Skanska operating margin stays slim

28 Oct 15 Skanska UK’s construction business recorded an operating profit of £24.8m in the first nine months of 2015 - with its operating margin of 2.4% unchanged from the first half of the year.

For the corresponding nine-month period in 2014, the margin was 3.1% from a profit of £30.8m. 

Revenue was flat at £1,031.1m (£1,001.3m). 

Skanska booked £1.299.5m of orders during the first three quarters of the year, compared to £1,229.2m 12 months ago.

Mike Putnam, Skanska UK’s president and CEO, said: “We are in a healthy and stable position. In a highly competitive marketplace we continue to deliver a steady operating margin that is at the higher end for the construction sector at this time.”

The third quarter saw a number of project wins and extensions, including a £32m contract with Gloucestershire County Council to upgrade 55,000 streetlights across the county. 

Skanska’s development business has exchanged contracts on a four-hectare development site near to Temple Meads train station in Bristol. The scheme will be Skanska’s next office-led commercial development in the city.

Several recently won, previously announced, major projects are currently in full mobilisation. These include the three AMP6 (Asset Management Programme) projects for Thames Water, Welsh Water and Anglian Water, worth a total of around £454m over five years.

“'A book-to-build’ ratio of 126% shows we have a robust pipeline of work. We remain in a challenging contracting environment, but I believe we are on track for a solid 2015 and a firm foundation for profitable and sustainable growth in 2016,” said Putnam.

Skanska is continuing to expand its workforce throughout the company.

“We have welcomed over 100 graduates and 75 apprentices and trainees as part of our 2015 intake,” Putnam said.   

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