But firm says numbers marred by 鈥榰nderperformance鈥� at building business
Skanska improved pre-tax profit last year as the firm said its operating numbers were helped by strong performances in its FM and infrastructure sectors.
But the firm said the figures were marred by 鈥渦nderperformance鈥� in the building business while it added the company had been on the end of a 鈥渂enefit from an adjustment related to one-off cost increases in a legacy project鈥�.
Earlier this year, 黑洞社区 revealed Skanska, which last year was formally confirmed as the winner of a 拢105m deal to build a new office block at 7 Millbank for client Old Park Lane Management and a 拢200m office deal for Grosvenor in Mayfair, is reducing its exposure to London commercial work.
It has told clients and consultants it is planning to limit its work on London commercial schemes at any one time to two contracts at pre-contract stage, two on site and two which are close to completing.
One source said: 鈥淭hey told us they want to reduce their risk, they don鈥檛 think the margins are there. They鈥檙e looking at other sectors like defence, hospitals, public sector work.鈥�
The firm will find out next month if it has won a 拢150m deal for Derwent at 50 Baker Street while it is on board for a 拢250m office scheme called Hill House in the City for Landsec.
In its results, Skanska said operating profit last year jumped from 拢6m to 拢54m while pre-tax profit was up from 拢27m to 拢78m. It said net cash at the year end was up 19% to 拢472m. Turnover was flat at 拢1.3m while the number of staff at the business was down 6% to 3,200.
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