Skanska lauds ‘early engagement’ as profit inches up

Skanska has hailed “early contractor involvement” as it reports an increased profit for last year.

The Swedish contractor’s UK arm, Skanska UK, penned a pre-tax profit of £27.3m in the year to 31 December 2023, up from £24.5m in the previous year. The contractor’s turnover dropped slightly, from £1.38bn to £1.33bn.

Skanska, which is the 13th biggest contractor according to the latest version of the CN100, pinpointed “early engagement” in the contracting process as key to “designing functional and cost-saving solutions” within projects.

“Joining a project at an early stage aids the group in early identification and management of risk with its customers, as well as in helping customers be more successful in their core businesses,” the contractor said.

“This is a procurement route that we increasingly demand during our opportunity selection phase.”

The firm pointed to two bumper projects that aided the strong performance last year – in a £219m job to build a two-storey military facility and warehouse at RAF Molesworth in Cambridgeshire, and a £158m fit-out job at a data centre site in London’s Docklands.

Despite Skanska’s strong performance, it tabled provisions of £77.0m, including around £20.8m of provisions for unspecified liabilities and £37.2m for “forward loss on contracts and disputes”.

Its cash was down at £396.3m, in comparison to £441.5m the year before, which Skanska said was mainly due to a £40.0m dividend paid out to its shareholders. Last year, Skanska paid its shareholders a £65.0m dividend.

Skanska employed an average of 3,436 people last year, almost unchanged from 3,435 in 2022. Its executive pay remained steady at £3.6m, with the best-paid director receiving total remuneration of £591,762.

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