Six months into the year, Skanska UK reports healthy results: revenue of £545 million and operating income of £17.5 million.
This performance equates to an operating margin of 3.2 per cent (excluding development), which is a slight increase on our first quarter results.
“This continues a pattern of good and consistent results over several years,” said president and CEO Mike Putnam. “Overall performance remains at the levels we would expect at this stage in the year.”
Commenting on the company’s pipeline of work, Mr Putnam said: “First-half reported order bookings are healthy but slightly behind target at £437 million, but we remain on track for the full year. We’ve started some exciting opportunities and made some significant wins.”
Commercial and residential development were a strong focus in the first half of 2013. Homes by Skanska has welcomed its first homebuyers into their properties, with strong interest in its planned future developments in Cambridge and the west of England. Work has begun at the UK’s first commercial development at 66 Queen Square, Bristol, and planning permission has been gained at 11-19 Monument Street, London. In addition, Skanska’s Bentley Works redevelopment was successful in its grant application from the Regional Growth Fund.
A more buoyant market in London saw Skanska UK win a number of projects in the capital, including office projects at 1&2 New Ludgate, 1 Aldermanbury Square and 100 Cheapside. There were project wins for specialist mechanical and electrical services for Al Jazeera at The Shard and at Bush House. The team also entered the high-end residential sector with a win for mechanical and electrical services at One Tower Bridge.
In civils, work continues on the joint-venture contract with Costain to deliver the £110 million station at Bond Street, a project won in 2013. Skanska also started work on the £321 million later-upgraded sections of the M25.
In utilities, a major win was the Thames Water Asset Management Programme Six (AMP6), worth approximately £80 million per year to Skanska from 2015 for five years. Work started on the eight-year Gas Distribution Strategic Partnership with National Grid, worth about £100 million a year to Skanska, from 2013.
Skanska reported its acquisition of Atkins Highways Services in February. The transition is proceeding well and the deal is expected to complete before the end of the year.