Swedish construction giant highlights performance of UK operations in nine month report

Skanska’s UK business has reported a 30% increase in revenue for the first three quarters of this year, although margins were slightly down, according to the company’s report for the year to date.

The group’s report for the first three quarters of this year, released to the stock exchange this morning, shows that its UK division’s revenue increased from £770m to £1bn. The revenues for July to September 2014 show a similar year on year increase to £362m compared to £280.6m in the same quarter last year.   

Operating proifts increased from £25.7m for January to September 2013 to £30.8m in the first three quarters of this year.

Order bookings for the Swedish construction giant’s UK business were also substantially higher, more than doubling to £1.2bn in January to September 2014 from £548.6m for the same period last year.

Skanska’s UK order book was bolstered by the recently awarded £87m contract for the Battersea Power Station.  The company also highlighted its success in being selected as preferred bidder on the New Papworth Hospital project.

However the UK business’s margins for the first nine months of the year were down from 3.3% between January and September 2013 to 3.1%for the same period this year. The third quarter showed a marginally sharper deterioration with margins for July to September dropping to 3.1% compared to 3.6% in the first three quarters of 2013.

Skanska president and chief executive officer Johan Karlström highlighted the UK as one of the multi-national’s strongest performing markets, writing in his forward to the nine month report that “order bookings were especially strong in the Swedish, US civil, UK and Polish construction operations.”