This week’s look at results from Bam Construction and Skanska Group plus Rio Ferdinand’s housing venture.
<10% – Interserve’s forecast turnover fall
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Gordon Kew reiterated chief executive Debbie White’s recent prediction that the construction arm of Interserve will shrink. Mr Kew said his “margin aspiration” was around 3 per cent for the UK construction business.
It was also revealed this week that Interserve is being investigated by the Financial Conduct Authority over the handling of inside information and its disclosures to the market relating to its energy-from-waste business..
292% – Bam Construction profit rise
Bam’s UK construction business saw a 292 per cent rise in profit during 2017, despite its Construct business reporting an overall decline.
Reporting its results for the year to 31 December 2017, Bam Construct posted a 26 per cent year-on-year fall in profit to £19.3m. However, its Bam Construction arm, which accounts for more than 90 per cent of the Construct division’s turnover, recorded pre-tax profit of £20.8m, up from £5.3m in 2016. Bam Construct’s overall profit decline was attributed to other areas of the business such as property and FM, as well as one-off gains in the previous year’s results.
£21,601,355 – Lagan’s industry debts
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KPMG’s administrator’s proposals for the Northern Irish company revealed it owed trade creditors £9,107,959, while a further £12,493,396 was owed to the company’s joint ventures. In February, Lagan Construction bosses confirmed they would be putting four of its construction subsidiaries into administration, with the group’s chair Michael Lagan blaming contractual disputes and delays to projects for the move.
26 months – Rio’s stalled housing plans
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Mr Ferdinand, along with former QPR striker Bobby Zamora and West Ham captain Mark Noble, first unveiled plans for the scheme at Mipim in March 2016, as part of the launch of their regeneration charity the Legacy Foundation. The project aims to build 1,300 affordable homes on a 22 ha site in Houghton Regis, Bedfordshire.
£104m – Skanska group profit fall
Skanska’s group operating profit fell 66 per cent – approximately £104m between Q1 2017 and Q1 2018. The Swedish company cited restructuring as the single biggest factor behind the decline, recording restructuring costs of SEK 670m (£56.2m) in the first quarter.
11 – £3.3bn surfacing winners
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Aggregate Industries, Colas, Galliford Try, Hanson Contracting and Tarmac have all won places on Highways England’s four-year framework, which will run from 2018 to 2022. The contractors will carry out critical resurfacing work as required without having to go through a lengthy bidding process.