Construction Enquirer Revenue restored to peak levels achieved 10 years ago
Vinci Construction UK saw pre-tax profit double last year to £24m as the business bounced back from the adverse impacts of Covid.
The jump in profit was delivered after revenue lifted by 37% to £1.2bn last year – returning to peak turnover levels achieved 10 years ago.
The improvement in trading saw net cash improved by a nearly a quarter to £312m.
Chairman Gilles Godard said: “The business has rebounded strongly since the Covid-19 pandemic last year.
“Each of our three business lines: Vinci Building, Vinci facilities and Taylor Woodrow improved their operating margins and collectively the business managed to increase its net margin to 3% and push its cash position above £300m.
“The economic environment remains challenging. The emergence of high levels of inflation requires us to continue to be ever more selective in our approach, and agile in delivery.
“Bidding opportunities remain strong and our order book exceeds £1.6bn.”
Vinci Construction UK divisional trading
Profit 2021: 2020
Revenue 2021: 2020
He forecast that despite an order book covering 90% of forecast revenue, Building operations revenue would remain in line with last year due to a slowdown of awards as tender prices outstrip clients’ budgets leading to a slowdown in awards.
Godard said that at Taylor Woodrow, the loss of the A417 to Kier and similar uncertainty around the A358 highway project meant that generating profitable turnover for 2023 would be the focus of the civil engineering business this year.
Taylor Woodrow’s increased focus on new energy markets has started to pay-off with work secured for the ECI phase of Fawley FAST and the Teesside Energy Hub.
Goddard said Taylor Woodrow has also picked up four commissions from Transport for London for ECI work on stations in London of which several are expected to go to build in 2022/23.
Vinci Facilities is bedding down its £100m a year Future Defence Infrastructure Services contract, and also targeting building fire safety work in the ra[idly growing market for social housing retrofit.