£910m turnover gives Skanska UK a margin of 3.4%

Skanska UK’s construction operations have once again delivered a 3%-plus margin. David Fison, chief executive, said he was delighted.

Since taking over the reins at Skanska, Fison has put operating systems in place that make industry-leading margins possible.

Annual results (12 months to 31 December 2006) show turnover 14% higher at £910m (£790m) while operating income was firmer at £30m (£26m). The figures point to a margin of 3.4% (3.2%).

Skanska’s orderbook stands at £1.8bn. The future workload includes several chunky schemes, the largest being the £1bn Barts & The London New Hospitals Redevelopment PFI where Skanska’s consortium partners are Innisfree and John Laing.

Also in the bag are Bristol Schools, the first contract under the UK’s Building Schools for the Future Programme.

Skanska is set to start work on three new ECI road schemes and two commercial projects in London, One Kingdom Street, Paddington Central, and 311 High Holborn, the two clients being Development Securities and Ebble Developments, respectively.

The acquisition of McNicholas plc – known as Brown Macs – was completed in December and will add £300m to Skanska’s 2007 turnover.

Skanska UK employs 5,300 people across nine operating units.