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Vinci posts £69m pre-tax loss in 2015 results as turnover falls by 8%

Vinci has posted a pre-tax loss of £69m after being hit by “a small number of complex legacy contracts” in 2015.

The company saw an 8 per cent fall in its turnover to £935.3m for the year to 31 December 2015, down from £1.02bn a year earlier.

However, its pre-tax £69m loss this year was a marked improvement on its previous results, where the company posted a loss of £217m, primarily due to delays to its work on Nottingham’s £570m tram extension.

In a statement to Construction News, chairman and chief executive Bruno Dupety said 2015 had been “a challenging year [due to] a small number of complex legacy projects, which had been secured in competitive market conditions”.

He added: “With our legacy projects behind us, at this time we are continuing to focus on turning the business around in 2016.”

Turnover in Vinci’s building division fell by 16 per cent, dropping from £480m in 2014 to £404m in 2015. The company said tendering activity in this division had “reduced significantly and deliberately” over the course of the year.

Its building arm also posted a pre-tax loss of £42.8m, Vinci adding that the division continued to target health and education works, with a focus on “negotiated opportunities with existing clients” across these two sectors.

The division’s order book stood at £385m as of 1 January 2016, which the company said would “ensure the same level of activity in 2016 as in 2015”.

It has already been shortlisted for the £4bn ProCure22 framework in its Integrated Health Projects joint venture alongside Sir Robert McAlpine.

In energy, the firm is continuing to work on a number of energy-from-waste projects, including a scheme for Amey Cespa in North Yorkshire. However, Vinci said it is no longer working on nuclear decommissioning at Sellafield.

In its accounts, Vinci said completion of the work “coincided with changes in the client team”.

A spokesperson added that the contractor would be “very keen to return” to the project.

Its civil engineering business posted a pre-tax loss of £37.5m, while turnover fell by 11.2 per cent to hit £270m for 2015, down from £304m a year earlier. Its order book as of 1 January 2016 stood at £401m.

Its civils division is tendering for the £11.8bn phase one civils works package for High Speed 2, where Vinci has been shortlisted in a joint venture with Balfour Beatty and BeMo Tunnelling.

Vinci has also worked on Highways England’s £5bn Collaborative Delivery Framework.

The group’s facilities arm saw turnover rise by 11.7 per cent in 2015, largely due to two acquisitions – Faceo FM and Powertest – made during the year.

However, the company said it was seeing “significant pressure on margins” in this division, adding that it would “continue to act with caution” in the sector.

Internationally, Vinci increased turnover to £48m, up from £38m a year earlier, after completing £23m of work in Oman and £7m of work in Abu Dhabi.

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