Skanska has reported a slight drop in turnover for the year ending 31 December 2011 but it also witnessed a slight increase in operating margin.
Turnover was £1.2bn, down £55M on the previous year. Operating margin stood at 3.3%, up on 3% the previous year.
Forward orders are sharply down, however, standing at just £878M compared with the previous year’s £1.3bn.
“Today’s results are evidence of the focus we are placing on managing operations across Skanska UK,” said Skanska president and chief executive Mike Putnam. “Revenue for the year is in line with our targets and expectations and I am very pleased that we have seen a slight increase in operating income, equating to an operating margin of 3.3%.”
He added that the drop in turnover and forward orders was a reflection on the current recession.
“Order bookings for the year are down and this is a reflection of the current recession in the market and the reduction in public projects resulting from government spending cuts,” said Putnam.
“While I expect market trading conditions to remain similar during the coming year, the pipeline of projects looks reasonable. We will continue to carefully select and target the right projects for Skanska focusing upon delivering the expectations of our clients and shareholders.”