Vinci UK’s civil engineering arm Taylor Woodrow lost £18M in 2017, depsite a return to profit for the UK business overall.
Financial results for 2017, filed with Companies House, showed the UK group made a pre-tax profit of £20M. However, its civil engineering subsidiary’s pre-tax losses deepened from £13M to £18M.
Taylor Woodrow, which is designing and rebuilding White Hart Lane station (pictured), had managed to pull its pre-tax losses back from £39M in 2015 – when turnover fell more than 10% – to £13M in 2016.
But the troubled Nottingham tram legacy contract has continued to hit profits, with the £570M project suffering severe delays.
Vinci Construction UK chairman Bruno Dupety said that although several projects that he described as “commercial challenges” had closed during 2017, three projects are expected to make a loss.These include the Nottingham tram scheme but Vinci would not reveal the other two projects.
Dupety said that one of the trio of projects could be “converted back to profitability” but warned that the remaining two would ”remain loss making until their completion”.
Vinci UK’s £2.5bn HS2 joint venture (JV) with Balfour Beatty is expected to make up a third of Taylor Woodrow’s annual turnover until 2024.
Taylor Woodrow will continue to work closely with train operating companies which have private money to invest in rail projects, while continuing to bid for two remaining projects on Highways England’s Collaborative Delivery Framework before the client switches to its Regional Investment Programme (RIP) later this year.
It will also continue bidding for Crossrail station building contracts in 2018 as its involvement in Crossrail’s western section, running from Paddington to Heathrow and Reading, comes to an end.