Bouygues UK pre-tax profits dropped by half in 2011 while turnover fell by almost a third.
Results for the year to 31 December 2011 show pre-tax profits of £11.97 million, down from £23.8m in 2010. The contractor recorded a £145m turnover – down from £205m in 2010.
A directors’ report said: “The company’s core business during 2011 was the construction of buildings, mainly hospitals and schools within the private finance initiative and Building Schools for the Future procurement frameworks, as well as residential and mixed-use developments.
“During the year the company reached financial close and started construction work on a further eight schools under existing BSF contracts, and one residential scheme.
“The directors anticipate that the company will continue to develop its current activities in the future.”
The government cut the £55 billion Building Schools for the Future in 2010, although work under BSF is still being procured.
Its replacements – the £2bn Priority Schools Building programme being procured through PFI and a £400m capitally-funded programme for 42 schools – are yet to be launched.
Bouygues UK said involvement in PFI projects presents specific risks “including the often lengthy selection process which raises the levels of costs that may or may not be recovered in the case that a bid is ultimately unsuccessful”.
Construction work through its Westminster Local Education Partnership generated £23.4m, down from £44.7m in 2010.
Revenue from its Tower Hamlets LEP rose to £65.9m, up from £44.7m. Operating profit dropped from £23.6m to £10.5m.
Accounts filed with Companies House show that the firm paid £10.22m to shareholders in 2011 – including a 2010 end of year dividend – compared with £14.1m in the year before.
Dividends paid during the year comprised a final 2010 dividend of £178 per share, totalling £8.9m. It also paid a 2011 interim dividend of £26.50 per share – or £1.33m.
Bouygues UK has also proposed an end-of-year dividend for 2011 of £136 per share, totalling £6.8m.
Cash dropped from £87.9m in 2010 to £63.4m by the end of 2011, and the average number of staff dropped from 452 in 2010 to 412 in 2011.