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FCC halves infrastructure losses

Spanish environmental and infrastructure company FCC Citizen Services has halved its losses for the year to December 2014 to €724M (£526M), compared with a loss of £1.1bn in 2013 on turnover down 6.2% to £4.6bn.

Parent group pretax profits rose 12.1% to £584M.

The biggest decline came from FCC’s domestic Spanish business, where there has been a downturn in infrastructure investment. Overall revenue from FCC’s construction division fell 20.1% year on year.

But, FCC highlighted key growth areas in its international business, where the company is focusing on improving profitability, including the middle east and north Africa where turnover rose 90.3%. FCC claimed a series of construction projects worth £2.76bn, including a £2.4bn branch line on the Lima Metro, helped drive this growth.

The FCC Construction order book is now worth £4.52bn.

Outside construction, group revenue rose 2.5%. FCC’s Environmental Services division increased revenue by 1.2% on the back of the UK business. In water, revenue climbed 0.9% and cement sales rose 0.4%.

A share issue in November 2014 raised £727M in capital which was used to cut company debt by 15.9% (£800M) to £3.65bn and the company claimed its divestment plan has achieved nearly 80% of its target of £1.6bn.

FCC chief executive and vice chair Juan Bejar said: “We will continue to work on cost reduction to make sure the business is agile to take advantage of financial upturn. We have started in the right direction.”

FCC results at a glance

  • FCC gross profits up 12.1% to £584M in 2014
  • The Citizen Services Group reduces losses by half to £527M
  • Turnover was £4.6bn compared to £4.88bn in 2013, below 6.2%
  • Net losses were £252M compared to £224M in 2013
  • Debt falls to £3.65bn, 15.9% less than at the end of 2013

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