Skanska, which last week said its UK arm had made an operating loss of £41 million in the first half of this year, saw turnover bust the £1 billion barrier in 2007.
The 2007 figures which have just been filed at Companies House were put together before last week’s news which revealed that it had been forced to make more write downs on three PPP projects.
This led to the departure of chief executive David Fison who was replaced by company veteran Mats Williamson who immediately vowed to get a grip on the problems affecting its construction projects in the PPP sector.
In 2007, the firm said revenue at its construction business, which includes its building, M&E and PFI activities, was up 22 per cent to £819 million which it said had been driven by activity in the London office market. It added that growth in both M&E and PPP work had also fuelled the rise.
Despite admitting that the credit squeeze had delayed a number of new jobs the firm said: “The outlook for the construction business stream, particularly around London and the South East, is looking strong for the near future with the new build market remaining active.”
And revenue at its infrastructure business, which includes its civil and ground engineering arms, ballooned 83 per cent to £514 million thanks in large part to its takeover of McNicholas Plc for £50 million in December 2006.
It said that the outlook for this business was good with 90 per cent of its anticipated activity for 2008 already in hand.
Pre-tax profits at the group slipped £800,000 to £38 million which the firm has blamed on the three PPP projects– believed to be two hospital jobs in Derbyshire and Nottinghamshire and a schools deal in Scotland.
Last week, the firm said it had been forced to write down £19.5 million on UK PPP work in the second quarter of this year, bringing the amount written down since the start of 2008 to £47.5 million.
In latest figures released by the Swedish parent last week, UK revenue in the first half of 2008 was up nine per cent to £756 million.