Bouygues (UK) sparkles with 8.8% profit margin

Bouygues (UK) achieved an 8.8% profit margin on its £120m turnover last year.

The group’s core business is the construction of buildings, mainly hospitals and schools, within the PFI and BSF procurement frameworks.

With few UK construction groups able to produce a profit margin of 3% or more, Bouygues achievement is quite remarkable although nothing new: the latest figure follows a margin of 10.4% in the previous year.

Bouygues latest results cover the 12 months to 31 December 2008.

Pre-tax profit ran to £10.3m (comparable figure in 2007: £11m).

The cash flow statement shows a net cash inflow from operating activities of £48m (figure in previous year: £50m).

The net funds jumped during the year from a starting tally of £97m to close at £140m.

Staff numbers rose to 370, up from 260 in 2007.

The group’s parent company is Bouygues, the French conglomerate. It received dividends to a total value of £11m during the period from this UK business.