Skanska UK profit soars to £ 22million in 2020
Skanska UK’s profit jumped to £ 22million in 2020, despite the impact of the COVID-19 pandemic.
The company has been targeting higher margin jobs and markets as part of its “Laser Focus Plan” since the end of 2017, with the ambition to achieve a 3% margin. This saw the company take on fewer jobs and contributed to a drop in revenues to £ 1.46bn for the year as of Dec.31, 2020, from £ 1.79bn in 2019. But profit before Group taxes rose from 14.3 million pounds to 22.4 million pounds. , nearly doubling its margin from 0.8 percent to 1.5 percent.
The group said it incurred significant one-off costs during the year, which it did not itemize, amounting to £ 21.7million. Without it he claimed his operating profit would have been £ 44.3million and he would have hit his target of 3%.
Skanska’s ‘Laser Focus Plan’ led him to sell his infrastructure services business which maintained highways, railways and lighting, and to abandon other contracts in the utility sector. . The sale of the £ 334million revenue division to M Group Services was completed in April 2021, with Skanska recording a profit of £ 31.5million on the transaction.
Last year he withdrew his real estate development plans and, before that, tried to offload his cement earthworks business, but failed to find a buyer at the price he wanted. The specialized activity is now considered to be part of the group’s main activities and is largely involved in HS2.
Skanska UK will now focus on the infrastructure works and construction markets. The company will launch a new business plan later in 2021, setting its goals for the next few years.
Its order book stood at £ 2.8bn at the end of 2020, with no project worth less than £ 30m. Among his main victories in 2020 were £ 240million 20 Ropemaker Street and £ 180million Blossom Street, both of which are commercial projects in London.
The group’s cash reserves stood at £ 422.4m at the end of the year, compared to £ 473.7m at the end of 2019.