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Bouygues takes €132m Brexit hit

Bouygues has revealed the cost of the Brexit process on the business as €132m (£116m) in 2017.

Despite UK sales of £1.64bn in 2017, up slightly from £1.631bn in 2016, the business was hit by a 7 per cent fall in the average euro / pound exchange rate. This meant when its sales were converted to euros the business was €121m down (£106m).

The French giant said that although its UK arm had “no exposure” to the uncertainties surrounding “imports and exports”, the negative impact of Britain’s decision to leave the EU cost the business €132m (£116m).

The overall group’s construction division saw a rise in margin or 0.2 per cent for the year. The business reported that a “highly selective” strategy for bidding on work had resulted in “excellent commercial performances” both in France and in international markets.

The group’s construction business sales were €25.8bn (£22.7bn) up 3 per cent for the year while operating profit was €945m (£834m) up €69m (£60m) on the previous year.

The multinational giant said it would continue to “be selective” and “focus on profitability rather than margins”. Bouygues said that it expect this would result in an improvement in operating profit and margin in its 2018 results.

Last week, Bouygues revealed it was set to win a £105m contract to build a new town hall and civic centre for Tower Hamlets Council in east London.

Earlier this month, the contractor was confirmed on a £300m London housing association framework.

 

 

Readers' comments (1)

  • Ahhh, a 7% hit. Whilst SME's are nursing 30% loss of earnings.

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