Vinci Building and FM arms rack up big losses for second year

Aaron Morby 7 months ago
Share

Vinci’s combined UK operations suffered a pre-tax loss of £6.4m last year dragged down by further big provisions from the building and facilities businesses.

Vinci UK CEO Scott Wardrop says Building business is following a three-year recovery plan
Vinci UK CEO Scott Wardrop says Building business is following a three-year recovery plan

On-going legacy problems relate to two fixed-price large building projects, University College London and Hospital Corporation of America in Birmingham, that were secured pre-Covid for Vinci Building, and a toxic healthcare PFI hard service contract in Coventry for Vinci Facilities.

The problems at the two building businesses overshadowed ‘exceptional’ results, at highways and civils firms Eurovia, Ringway and Taylor Woodrow, in the first consolidated accounts to be published for all Vinci’s UK activities.

These show that together the five core businesses lifted revenue by 8% to £2.1bn.

Previously the French-owned group had been financially organised as two separate reporting groups Vinci Construction UK and Eurovia UK.

The new consolidated reporting structure for Vinci Construction Holdings for the year ending December 2023 masks the extent of the continuing losses at the Building and Facilities operations.

Although the still-reported previous regime for Vinci Construction UK, which includes Taylor Woodrow ‘s profits with the losses of Building and Facilitiess, reveals operating losses deepened to £79m in 2023 from £54m.

The new consolidated business accounts detail extra provisions of £27m for construction project losses taking the running total to £90m at year-end, and extra provisions of £79m for after sales service relating to warranties on completed projects, taking this total to £95m.

Scott Wardrop, chief executive for Vinci Construction Holdings, said: “Our Eurovia, Ringway and Taylor Woodrow businesses, all had exceptional results, all over +4% operating result in 2023, but due to the impact of the significant provisions made for Vinci Building and Vinci Facilities risks, the groups’ first full year trading was a trading loss.

“We have three-year plans for each business and each business unit, and we plan to recover to +2.0% in 2024.

The consolidated group of five companies reported a combined order book of £2.8bn with Taylor Woodrow strongly ahead of a year ago.

Order book for five main firms
Eurovia £247m -15%
Ringway £961m -7.5%
Taylor Woodrow £667m 25%
VINCI Building £518m 16%
VINCI Facilities £488m 0.4%

Over the year, overall head count fell by 5% to 6,503 staff, while cash at bank jumped 40% to £569m.

Wardrop added: “Our UK group has had to endure significant external and internal factors, while merging the two groups into Vinci Construction Holding Limited.

“We are fortunate to have the full support of our board and our shareholder, Vinci Construction SAS, which has been vital to cope with the degree of reorganisation, restructuring, setting common policies and processes, while dealing with such significant legacy issues, and ensuring our five operating businesses are ready to face the challenges of the coming years in rapidly changing markets.

“The group is now in a position to face these challenges more effectively, becoming stronger through more effective governance, common systems and processes with greater accountability in all our business units and key operating businesses.

“We have achieved considerable change and through 2024 and 2025, we will emerge as a strong dynamic UK infrastructure group.”

 

Latest news

Final phase of £1.5bn Elephant and Castle revamp hits planning

Get Living submits revised plan for 500 homes and 450-bed student block
19 hours ago

Aston Villa to revamp North Stand

Club to reuse existing structure rather than complete rebuild
18 hours ago

Sir Robert McAlpine claws way back into profit

Firm says return to profit and strong cash balance validates new strategy
22 hours ago

Severfield to cut staff by 6% amid pricing pressure

Steelwork contractor warns of extended tighter pricing due to project delays
23 hours ago

JRL completes sale of 50% stake to Malaysian giant IJM

Deal boosts balance sheet and kicks starts growth plan
23 hours ago

Green light for £100m Liverpool Baltic station build

Enabling highway works to start in the autumn
2 days ago

First live tests for flying construction robots

Drones can lay construction materials at height on site
23 hours ago

Three firms land £170m Gentoo Sunderland housing deal

PHS Solutions, Esh and RE:GEN to deliver 10-year home upgrade plan
2 days ago

Gateway gridlock hits build-to-rent delivery as starts nosedive

Build to rent starts plunge 18% in the capital
2 days ago

Call to shift Gateway 2 checks to end building bottleneck

"The current system isn't working but we all want to see safe buildings"
2 days ago

GBN launches £600m bid race for SMR engineer roles

Owner engineers to provide technical and assurance services
2 days ago

Wates hires ex-Homes England chief to head public sector push

Robert Stone to spearhead its public sector and national frameworks strategy
2 days ago

Acheson Construction collapse costs suppliers £8.5m

One frustrated creditor seized a telehandler after contractor went into administration
3 days ago

Dominus wins go-ahead for 173-bed Glasgow scheme

Old Wynd Street job expected to cost around £25m to build
3 days ago

Safety Regulator misses deadline to clear Gateway 2 backlog

Investors pulling out of funding high rise buildings
3 days ago

CITB still sitting on £95m cash pile

Staff numbers jump from 666 to 763 as training body wage bill soars
3 days ago

£500m road surfacing framework market call

NEPO goes out to consultation on north east regional highways deal
3 days ago

Two share £220m Scottish rail repairs and minor works deal

AmcoGiffen and CPMS win civils and building repair deals
3 days ago

Builder wanted for £60m London leisure and flats job

Tower Hamlets aims to replace St George’s Leisure Centre in Shadwell
3 days ago

Contractor confirmed for business park expansion

Roe Developments to start on next phase of Castle Donington scheme
3 days ago

Driver escapes injury as scaffold collapses onto van

Major three-lift scaffold fall blocks north London high street
1 week ago

Gilbert Ash to be sold to staff

£267m turnover contractor to transition to an Employee Ownership Trust
1 week ago

M Group seals biggest-ever deal with Telent takeover

Digital infrastructure specialist deal lifts turnover to £3bn
1 week ago

Aggregates firm Ashville went down owing more than £3m

Debts revealed in Companies House update
1 week ago

Cardo saves 100 jobs at Breyer roofing arm

Private equity-backed Welsh maintenance group continues to expand
1 week ago

Excavator knocked off lorry going under bridge

Traffic Commissioner inquiry after accident in south London
1 week ago

Czech energy tycoon buys UK’s biggest rebar supplier

Spanish offload Celsa UK operation to be rebranded 7 Steel UK
1 week ago

Caddick Construction targets £400m turnover

Regional shake-up pays off at contracting arm
1 week ago

Redrow chief steps down after Barratt merger

Matthew Pratt leaving after 22 years
1 week ago

United Living names new property services senior team

New CEO and COO appointed to lead growth in housing upkeep and retrofit
1 week ago

Contractor services