Imtech vows to avoid big resi jobs after return to profit

Aaron Morby 3 years ago
Share

EDF-owned building services contractor Imtech returned to profit last year and is now targeting £600m revenue for 2022.

The forecast of a strong year ahead follows a restructure of the main engineering services division and recovery from legacy contracts.

Revenue grew in 2021 by just over a quarter to £562m generating a modest pre-tax profit of £3.9m, after its £27m loss in the previous year.

Most of the growth came from engineering services where revenue jumped by over £100m to £400m in the year.

But this division also continued to be dragged down by its last loss-making contract.

CEO Gautier Jacob said that profit had been impacted by a writedown at Engineering Services on a last problem residential project in London amounting to £5.4m in the year, which is now fully agreed.

In total, the London and South arm of the division had to battle through three loss-making residential projects over the last year or more.

The problems with residential projects prompted a review of  business strategy at the division.

Jacob said: “The business has drastically reduced its exposure to the residential sector and focused on its strategic sectors where it is able to add value through its engineering capabilities.

“The underlying engineering services business is now performing well and is benefitting from the restructure completed in 2021.”

Jacob added that Imtech, which employs nearly 3,000 staff, was now well placed to build on the business foundations laid this year.

“We expect to improve this further in 2022 with EBITDA forecast to reach £21.1m,” he added.

Imtech closed the year out with an order book of £568m, up 6% on the start after Engineering Services, Energy Services, Suir and Inviron saw good orders growth.

The provision of services to parent company EDF last year represented less than 10% of total turnover.

This included FM services across the EDF Corporate portfolio, delivering M&E projects within EDF Generation while being involved in the construction of Hinkley Point.

Jacob added: “Our financial performance and capacity, complementary workstreams, broad position across our strategic sectors and the backing and formidable expertise of EDF Group mean we are ready to deliver our growth strategy in the coming years.”

 

Latest news

Kier wins first phase of £700m Warwick Uni campus build

Firm to start work on science and engineering precinct last this year
9 hours ago

Torsion and Khalbros to build new Leeds £1bn neighbourhood

Eastgate Quarter site acquired from Hammerson
9 hours ago

JCB to double size of US factory in wake of Trump tariffs

$500m Texas factory under construction to expand to 1m sq ft
10 hours ago

Green light for £2.4bn Luton Airport expansion

Government go-ahead to transform airport
10 hours ago

Diversification pays off for concrete frame specialist Statom

Strong results as £180m turnover firm expands into infrastructure sector
12 hours ago

Cardo in talks to buy Breyer roofing arm

More than 100 jobs could be saved at Breyer Roofing
17 hours ago

Quartet win £750m Wales & Western railway deal

Network Rail confirms partners for Reactive and Minor Works framework
17 hours ago

Plans in for £350m London Bridge life sciences hub

Snowsfields Quarter will consist of three buildings containing labs
18 hours ago

Surging labour costs push tender price forecast up

Pick-up in tender prices despite weak growth
18 hours ago

Permasteelisa wins cladding deal on Multiplex city tower

Facade specialist wins work on Fenchurch Street ‘hanging gardens’ tower
17 hours ago

Wates wins fit-out for Manchester First Street Hub

Smartspace arm secures another Government hub deal
2 days ago

Peel Ports reveals winners for £750m framework

18 firms win places on deal: Full list
2 days ago

Big trade names dropped in M Group rebrand

Acquisitive group formed from Morrison Utility services in 2016
2 days ago

Breyer Group files administration notice

Staff hope rival firm could buy assets and save jobs
2 days ago

Former Severfield director takes helm at Embrace Steel

New CEO Martin Kelly aims to step up expansion of steelwork contractor
2 days ago

£302m upgrade funding awarded to FE colleges – list

Cash shared out between England’s 179 college groups
2 days ago

FK Facades thrives but construction arm hit by ISG row

Dispute with failed contractor costs specialist £5.5m
2 days ago

Galliford Try gets go-ahead for Milton Keynes PRS tower

33-storey tower needs gateway 2 approval before work can start
2 days ago

Small house builders get £150m funding for green homes

Developers will have to meet-up to ten new criteria to benefit from interest rate discounts
2 days ago

Lendlease Construction renamed Bovis

US private equity firm completes £35m purchase of UK contracting business and rebrands
3 days ago

Breyer Group battles for survival as rivals circle

Housing maintenance firm fights three winding up petitions in a month
3 days ago

Careys facing £2.4m claim by developer over demolition cartel

Giant Hong Kong developer claims it was overcharged on Lots Road Power Station job
3 days ago

Multiplex profit drops a third as revenue rises to £780m

Spate of new orders sets contractor up for three years of work
3 days ago

Galliford Try and Breheny land latest Sizewell C road deals

More infrastructure deals for new nuclear power station
3 days ago

Worker trapped in collapsed septic tank pit

Contractor and director fined after worker suffers multiple fractures
3 days ago

Homes England buys stalled Broad Marsh site

Demolition to finally be completed as developer hunt begins
3 days ago

Vistry go-ahead for 353 homes at Rochester Riverside

Work to start on next phase of Kent town regeneration at end of this year
4 days ago

M&E firm J S Wright collapsed owing £19m

Trade creditors hit for £11.4m by employee-owned Midlands firm
4 days ago

Right to work checks to be extended to self-employed

Government plans crackdown on illegal working and rogue employers
4 days ago

Midlands developer turns to London with £1bn resi schemes trio

SevenCapital plans 1,000 flats in Kensington, Islington and the Isle of Dogs projects
4 days ago

Contractor services