Vinci Construction UK, which comprises Taylor Woodrow, Vinci Building and Vinci Facilities, made a loss before tax of £51.4m in 2023 (2022: £43.5m pre-tax loss) on turnover of £1.34bn (2022: £1.24bn).
Results for the newly formed Vinci Construction Holding Limited, which also includes the highway maintenance businesses Eurovia and Ringway, were not quite so bad, showing a pre-tax loss of £6.5m (2022: £6.1m loss).
Consolidate revenue for the holding company, excluding joint ventures, was up 8% at £2,126m.
Chief executive Scott Wardrop writes in the annual report: “Our UK group has had to operate in a sustained volatile business environment, with a unprecedented period of global uncertainty coming out of the pandemic affecting global supply chains and more recently the Russian invasion of Ukraine that commenced 24th February 2022. This has resulted in further significant supply chain issues, particularly with oil-based raw materials and consequential volatile indexation and rising interest rates, which has affected our subcontractors and suppliers.
“We have also had out own legacy issues in Vinci Building and Vinci Facilities, which has had to be provided for in 2023 and 2022, in terms of the potential risks emanating from the government’s Fire Safey Act extending up to 30 years in some cases, two fixed price large building projects, University College London and Hospital Corporation of America in Birmingham, that were secured pre-covid for Vinci Building, and a toxic healthcare PFI hard service contract in Coventry for Vinci Facilities.
“As a result, the group loss for the year after taxation amounted to £7,248,000, which is against a loss of £5,184,000 when recalculated as the full-year equivalent results of the combined former Eurovia UK Limited and Vinci plc.”
The after-tax loss for Vinci Construction UK was £35.4m in the year to 231st December 2023, as against £35.8m in 2022.
