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Bouygues UK slumps to £78m loss for 2016

The UK arm of French contractor Bouygues saw its turnover increase but pre-tax losses slumped to £78m in 2016.

Despite turnover rising £349.6m to £555.6m in the year to December 2016, the company posted a pre-tax loss of £78.5m.

This is on top of a £19.4m loss recorded in 2015.

Bouygues UK director Fabienne Viala attributed the loss to recently completed projects.

In the director’s statement, Ms Viala said: “This loss was concentrated in a limited number of projects, most of which were completed during 2016 with a number due for completion in early 2017.”

Despite the increase in losses, the firm was bullish about its prospects for the year.

The contractor said its optimism was underlined by an injection of £79m into the company through an equity subscription by its parent company Bouygues SA, which was revealed in the accounts.

Commenting on the equity injection, Ms Viala said: “These steps… provide a solid foundation that will allow the company to return to profitability in 2017.”

New work secured this year includes the £965m Chilterns Tunnel and Colne Valley viaduct section of HS2 as part of the Align JV with Sir Robert McAlpine and VolkerFitzpatrick.

The accounts also showed staff numbers increased from 874 to 1,216 between 2015 and 2016.

Bouygues UK has exited a number of schemes during the course of 2017.

In March the contractor left the £1bn Battersea phase three scheme after agreeing with the developer Battersea Power Station Development Corporation (BPSDC) that it would not take the project beyond the scope of the preconstruction services agreement.

Last month the firm’s chief operating officer Craig Tattin left the company to “pursue another career opportunity.”

Readers' comments (1)

  • Hardly surprising.
    Dreadful company that just cannot build. Acquires decent companies and then rebrands them and ties them up in bureaucracy.
    Appalling treatment of subcontractors too - no wonder they can’t get people to work with them on their schemes.

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