Skanska delivers steady performance in first half of 2015

The revenue from Skanska UK’s construction business in the first six months of 2015 was £675 million. Operating income was £16.1 million, which equates to an operating margin of 2.4 percent.

Skanska’s development business continues to perform strongly, with the sale of 66 Queen Square in Bristol to Aviva Investors for about £33 million. Skanska has also acquired the long-leasehold interest of 51 Moorgate in the City of London from Corpus Sireo, while The Monument Building in London – which is under construction – is attracting encouraging interest from agents and investors.

Highways England has appointed Skanska, in a joint venture with Costain, to improve part of the A14 between Huntingdon and Cambridge in a contract worth around £600 million. The agreement is expected to be signed in 2016.

A number of contracts were won or extended in the second quarter of 2015. These include a new research facility, ESS Lund, near Malmö in Sweden which is being built as part of a joint venture with Skanska Sweden. This contract is worth £25.4 million to Skanska UK.

Several projects were successfully completed in the first half of 2015. These include the £34 million extension of HMP Thameside in London and the One and Two New Ludgate commercial development in the City of London.

Skanska UK’s President and CEO Mike Putnam said:

“Our order booking and pipeline of future work remains strong. We are also preferred bidder for a large number of projects. Following the recruitment of 750 people in 2014, we are taking on a further 1,000 people to deliver new projects. The outlook for 2015 as a whole is positive.”