Vinci profit drops as pension and insurance premiums rise

A £4.3m climb in Vinci's pension fund contributions and a £1.5m rise in insurance premiums took the shine off the group's 2003 pre-tax profit which was slightly lower at £8.4m (£9.9m).
Turnover (12 months to 31 December) was higher at £490m (£450m). Creditor days were reduced to 42 days, down from the figure of 47 days in the previous year.
Two years ago, when Vinci was still on a pensions holiday, the assets in its pension fund stood at £125m. Today the assets still have a similar value, but liabilities have climbed over the same period from £123m to £155m. "The result is a £30m gap," Alec Comba, finance director, said. The problem stemmed from the drop in yields from assets invested in bonds, he said.
Vinci re-commenced pension fund contributions in 2002 with a figure of £2m and last year stepped up to £6.3m.
During the last year, Norwest Holst Construction was selected as a supply chain partner for the NHS Estates ProCure 21 initiative and was awarded 13 healthcare projects, the biggest being the £55m redevelopment of Broadgreen Hospital in Liverpool.
Two PFI contracts were won: Sandwell Schools in the west Midlands and Swindon police headquarters.