Business rethink at Bouygues after firm stays in red to take losses over £200m in past four years

Bouygues UK sunk further into the red last year to take the company’s cumulative losses over the past four years to more than £200m.

The firm, which in the spring got the green light for a 2,000-bed student accommodation scheme due to be built behind Tate Modern in the middle of London, said pre-tax losses in 2025 widened to £76m from £32m last time on turnover up 15% to £395m.

In a note accompanying the accounts, the firm said: “The increased loss for the year arose as a result of costs related to subcontractor performance, labour availability and the continuing impact of post completion liabilities relating to building safety.

“Subcontractors continued to be impacted during the year in regard to delivery of services as a result of challenging market conditions. There were a small number of failures of subcontractors working for the company during the year.”

In a statement, Philippe Bernard, chair and CEO of Bouygues UK, said the ongoing losses have prompted the firm into a business rethink.

He said: “Although our 2025 financial year was challenging, marked by inflation, labour shortages, geopolitical uncertainty and building safety liabilities, we have recently taken a rigorous approach to reassessing our business strategy.

“With strengthened leadership, we’re pursuing more strategic contract selection and improved project delivery to enhance margins and sustainability.”

He added: “We continue to secure major projects, demonstrating continued market confidence in our capabilities. Our strong financial position, with no external debt and significant cash resources, gives us the flexibility to be selective. In addition, we have prioritised our supply chain, achieving Bronze Status under the Fair Payment Code.

“We respect our partners and know that supporting their cash flow strengthens industry resilience. We are focused on quality delivery and building a stronger, more resilient business for the future.”

Building safety provisions jumped to £202m from £155m although it said it was “virtually certain” that it would get back £70m – up from £49m last time – in insurance reimbursements relating to the provisions.

The results cover the firm’s building contracts, including its schools, hospital and university work, with the performance of its infrastructure business, such as its scheme at Hinckley Point C, recorded under other parts of the company.

In July, the firm’s French parent, which also includes a media and telecoms business, said turnover slipped 1% t0 to €26.3bn (£22.5bn) for the first six months of this year. It said its current operating profit from ongoing activities was up 4% to €829m (£708m). Revenue at the firm’s construction arm was down 2% to €12.4bn (£10.6bn) during the period.