The latest financial results for Vinci Construction UK show that turnover for its civil engineering arm Taylor Woodrow, fell from £304M in 2014 to £270M in 2015.
Overall Vinci Construction UK – including its building and facilities divisions – had a £68M loss for 2015, down from a £209M loss in 2014. Revenue in 2015 was £935M, down from £1,017M in 2014. As of January 1 2016, the civils order book was £401M with work for the year almost entirely secured.
In the civil engineering division, the report highlighted contract wins such as Taylor Woodrow and Vinci Construction Grands Projets being awarded a position on the Collaborative Delivery Framework for Highways England. Also, in joint venture with Balfour Beatty, it was awarded three smart motorway schemes which have a value of £700M over the next four years of which Taylor Woodrow has a 20% share.
A Costain/Vinci joint venture has also signed an early contractor involvement (ECI) contract for the M4 Corridor south of Newport. The project will be worth £800M, of which the business has a 25% share. Construction is expected to start in 2018.
International work increased to £48M of turnover in 2015 compared to £38M in 2014, of which £18M is civils work in Saudi Arabia, including work on the joint venture for the £133M Briman Reservoirs Project.
In terms of the civil engineering division’s outlook, the company said there continues to be significant opportunities in rail with High Speed 2 (HS2), but the roads sector is providing many opportunities.
The report added: “It is now emerging as a key sector with an anticipated three-fold increase in major project spend on the English strategic road network over the next five years. In addition we also see strong forward investment in the Welsh roads market.”
In view of the financial results in recent years, Vinci UK has launched an in internal initiative to boost profits. The report said the company expects to see the benefits of this initiative from next year.