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Vinci UK reports £33.8m pre-tax loss for building division

Vinci UK has reported a pre-tax loss of £33.8m in its building division for 2013, following a pre-tax loss of £6.6m in 2012.

In the contractor’s annual report for the year ended 31 December 2013, Vinci UK chairman John Stanion put the “significant trading losses” down to “the difficult trading environment”.

Overall, Vinci UK’s turnover in 2013 was up slightly to £1.25bn, compared with £1.11bn in the previous year.

However, pre-tax profits fell by 49 per cent to £7.1m last year, compared with £13.8m in 2012.

Despite the trading difficulties, Mr Stanion said the building business had grown in the Midlands due to commercial and industrial sector wins.

He added that the firm expected to increase its turnover in the South this year, where private residential, commercial, health and mixed-use schemes are coming to market.

Results breakdown

  • Building saw a pre-tax loss of £33.8m in 2013, following a £6.6m loss in 2012
  • Civil engineering reported pre-tax profits of £10.5m in 2013, down from £11.7m in 2012
  • Facilities reported pre-tax profits of £6.7m in 2013, down from £7m in 2012
  • PFI reported pre-tax profits of £23.3m in 2013, up from £3m in 2012

The firm benefited from £22.1m of other operating income from the disposal of PFI assets during 2013, including its remaining stakes in Medway Police Station and schools in Derby, Newport and Sheffield to Infrared Capital Partners.

Vinci UK’s average number of employees during the year fell to 3,764 in 2013 compared with 4,061 in 2012.

Its annual employee survey saw its engagement score fall from 80 per cent to 75 per cent, which it put down to “difficult trading conditions and business change”.

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