Vinci reports that 13 of the 17 UK civil engineering projects that it specifically targeted last year were either deferred or cancelled by clients.
In its annual results filing, Vinci describes 2019 as “a volatile and unpredictable year for tenders”. [...Hah! Let’s see what they have to say about 2020 in 12 months’ time...]
Despite the uncertainty in public sector project starts, Vinci plc made a pre-tax profit of £17.2m in 2019, up a third on 2018’s £12.9m, while revenue was up 4% to £909.2m (2018: £873.3m).
Vinci plc is the parent company for all Vinci’s UK activities, in building, facilities management and civil engineering (through Taylor Woodrow), developments, as well as the consultancy business Vinci Technology Centre UK and the manufacturing business Conren, which makes resin surfacing and waterproofing products.
Turnover in the Building division in 2019 reached £429m (2018: £401m) mainly due to some significant contract awards in the northwest of England, and made an operating profit of £8.8m, at 2% margin.
Civil engineering turnover dipped to £165m, down from £213m in 2018, which was attributed to the delay in starting works on HS2.
Revenue from Facilities increased from £245m in 2018 to £295m in 2019, with operating profit from the division growing 10% to £8.6m.