Bouygues UK losses widen to £62m

Aaron Morby 8 months ago
Share

Bouygues UK sunk even deeper into the red last year after making additional building safety provisions and suffering further contract losses due to inflation and subcontractors going to the wall.

The French-owned contractor suffered pretax losses of £62m in the year to December 2023, worse than the £42m loss reported in the prior year.

Bouygues UK, which carries out an array of work from schools to housing, student accommodation and healthcare projects, also reported turnover down by 15% to £326m, marking a further year of contraction from £484m peak sales in 2021.

Customer warranty provisions including building safety post-completion liabilities jumped to £116m from £62m.

The hit saw its French parent company inject £50m into the business last December, improving year-end cash levels to £188m.

In a statement released with the accounts, chief financial officer, Thibaut Roux, said: “The loss for the year arose as a result of cost increases due to subcontractor performance, availability of labour, the conflicts in the Ukraine and the Middle East as well as the continuing impact of post-completion liabilities relating to building safety.

“Subcontractors continued to be impacted during the year in regard to delivery of services as a result of challenging market conditions. There were a small number of failures of subcontractors working for the company during the year.

“Actions were implemented to ensure that works were able to continue with cost forecasts being revised accordingly.”

Average headcount at the business fell to 1916 (2022: 1957).

The accounts did not include Bouygues’ work on infrastructure schemes such as HS2 or Hinkley Point, which are being delivered through sister company Bouygues Travaux Publics and other parts of Bouygues Construction.

 

Latest news

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

Firm to start work on science and engineering precinct last this year
8 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
9 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
11 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
16 hours ago

Plans in for £350m London Bridge life sciences hub

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

Surging labour costs push tender price forecast up

Pick-up in tender prices despite weak growth
17 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
1 day 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