Contractor seeks more strategic frameworks and higher-value project work

Vinci

Vinci UK is targeting higher value project work and frameworks after posting a 23% drop in pre-tax profit.

The contractor said greater competition and lower margins on jobs under £5m during 2012 had prompted the rethink.

The firm posted unchanged revenue of £1.1bn for the year ended 31 December 2012 and pre-tax profit of £15.3m, down from £19.8m the previous year.

Vinci UK streamlined its building business during the year from four to two regions, in the North and the South.

The firm’s building business reported a £6.6m loss after a £2m operating loss the previous year. Its civil engineering and facilities businesses reported a £11.7m and £7.1m operation profit respectively.

The firm is targeting growth in its international business, which operates in the Middle East.

In its building business, Vinci saw the greatest overall decline in activity in the retail sector, while healthcare activity also declined.

There was strong activity in the education sector in the South-west and Wales and growth in the industrial sector in the Midlands.

In the North-west and North-east Vinci targeted more private sector work as public sector work declined, while the firm targeted larger projects in the south.