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Vinci UK tumbles to a loss

23 Oct 23 Vinci has blamed Brexit, covid, the Russians and inflation for its £44m pre-tax loss in the UK last year.

Vinci Construction UK made a pre-tax loss of £44.2m in the years to 31st December 2022 (2021: £23.6 profit) on revenue up 10% to £1,286m (2021: £1,166m).

At an operating level, 2021’s £76m profit became a loss of £28m in 2022.

Vinci Construction UK Lt d is the main trading arm of Vinci plc, principally trading  in the UK through three main business sectors: buildings, facilities and civil engineering (Taylor Woodrow), with a supplementary technology division.

The building division made a pre-tax loss of £37.3m on £551m revenue; civil engineering made a profit of £10.8m on £292m revenue; facilities management lost £31.9m on £444m revenue.

Chief executive Scott Wardrop said that the “business suffered from hyperinflation, labour shortages and a higher than usual attrition rate. All of these were influenced heavily from the cost of living crisis across the world, the war in Ukraine, covid pandemic and Brexit.”

In particular, there were two loss making contracts – fixed-price projects secured before the covid pandemic – and remedial fire and cladding works.

The loss making contracts were for University College London (UCL) and HCA Healthcare. For UCL Vinci has built its new campus in east London on the site of the 2012 Olympics village. The HCA job is a hospital in Birmingham. Both were valued at £100m at outset.

“2022 has been very difficult but we face 2023 and beyond with the full support of our shareholder, Vinci Construction SAS, as we bring together our UK group in 2023 under the Vinci Construction Holding Limited umbrella,” Wardop said.

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