Highways acquisition lifts Skanska’s profits

The acquisition of Atkins Highways Services helped Skanska’s UK construction business record a significant jump in revenue in the first quarter of 2014.

The company recorded operating income (profit) of £10.4 million in the first quarter of 2014 and revenue of £334.6 million, equating to an operating margin of 3.1%. The revenue growth is circa 15% higher than the average quarterly rate in 2013.

President and CEO Mike Putnam said: “We have seen a significant jump in revenue. This is due to the first full quarterly contribution from our enlarged road maintenance operation following the acquisition of Atkins Highways Services last year, combined with underlying growth across our business in line with our strategic plans.”

In the first three months of 2014, £361 million of orders were booked. This included a contract to build One New Street Square in the City of London.

Putnam added: “Our order bookings equate to a book to build ratio of 108%. Any figure greater than 100 per cent is good news as it means we are taking in more bookings than revenue. The outlook for the year as a whole is positive as we have a strong pipeline of work.”

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