Thursday, May 7, 2009

Skanska UK - no drop in turnover expected in 2009

Skanska’s UK construction turnover in 2009 will match the 2008 figure reports chief executive Mats Williamson.

He adds that Skanska UK has secured ВЈ550-worth of new work in the past four months.
The latest information comes on top of news that in the first quarter of 2009, Williamson led the business back into profit with a margin of 1.7%.

Skanska's 2008 annual results show a loss of ВЈ43m on a turnover of ВЈ1.5bn.

“I’m happy we are back in the black,” said Williamson, “and hoping we are able to deliver the profit predicted in the full year.

“The market is tough but we have already secured new work. I hope we will have secured the M25 project during Q2 – we are working towards financial close.”


Skanska UK - no drop in turnover expected in 2009


Globally, Skanska anticipates a 10% drop in construction turnover during 2009 as compared with the previous year.

The UK is exempt from that situation. “That’s because Skanska in its home market is a different business model,” said Williamson. “Here in the UK we are move involved with major projects and our turnover this year will be the same as 2008.”

He reported a tightening of margins, however.

Asked about Skanska UK’s supply chains, Williamson said: “Yes we are worried and we have had some [subcontractors] go bust but we are working to have a plan to mitigate the knock-on effect to us if that happens.

“We try to follow our payment terms as agreed and the feed-back from some is that they think Skanska is one of the best to work for.”

Skanska UK operates in several construction market sectors. The drop in demand from commercial clients has been “tough” and there have been redundancies as a result.

“Civils is stronger and we’ve been able to achieve some internal transfers,” said Williamson.