Underlying profits also increase
Skanska’s income was up 12% last year as it reaped the benefits of HS2 work and new contract wins.
The contractor’s results for the year to 31 December 2022 showed revenue of £1.4bn, up from the £1.2bn recorded the year prior.
Pre-tax profit stood at £55m which was down from £72.6m in 2021, but that year’s results were bolstered by the sale of Skanska’s infrastructure services function.
That business’ operating profit for 2021 was £9.8m and the firm’s gain on its disposal was £29m. With these figures excluded, Skanska’s pre-tax profit was up 63% in 2022.
Major contract wins for Skanska in 2022 include the £235m 105 Victoria Street scheme in the west end, a £259m vehicle storage hub for the Defence Infrastructure Organisation and a £400m+ upgrade to a stretch of the A46 Newark Bypass.
The firm also benefitted from its work as part of Skanska Costain Strabag, a HS2 tunnelling joint venture which was handed an additional £305m for the job earlier this year.
It has also been carrying out enabling works on Euston station for Network Rail as part of work to build a new terminus next door but has said it will finish up work at the site by the end of the year after the government mothballed the new station scheme.
Skanska has recently undergone a leadership change, with Katy Dowding appointed president and chief executive of the UK business in April, taking over from the retiring Gregor Craig.
The company booked £1.5bn of orders in 2022 and had £441.5m of cash without leverage or debt.
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