Vinci Construction UK turned over 拢1.33m in 2024, unchanged from 2023, and made a pre-tax loss of 拢36,000.
Though the loss was marginal, and a solid improvement from the 拢51.4m and 拢43.5m pre-tax losses of the previous two years, it was still another loss.
Operating loss, before financial income, was 拢15.4m, compared to 2023鈥檚 拢65.8m operating loss.
Vinci Construction UK comprises Vinci Building, Vinci Facilities and Taylor Woodrow and is wholly owned by Vinci SA of France.
Vinci Building turned over 拢606m, with five of the six business units performing well but one suffering a loss mainly due to a fixed price student accommodation project on a price agreed back in 2021.
While Vinci Building made an operating profit margin of 1.8%, that reduced to just 0.9% after interest resulting from further provisions made against legacy fire and cladding claims.
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The problems seem to be at Vinci Facilities, which operated at a loss for a third successive year, with a minus 3.2% operating profit margin.
鈥淭his was the result of recognising historic losses related directly to the completion of our Ministry of Justice building framework projects and the extreme application of healthcare PFI contract terms,鈥� explained chief executive Scott Wardrop in the 2024 聽 accounts report.
鈥淭he contracts under legacy PFI contract terms have proved very difficult to manager and operates,鈥� he said, 鈥渨ith severe tensions between Client and ProjectCo, in addition to the ProjectCo and its subcontractors,鈥� he said.
In the 2023 report he had been even more blunt, describing a healthcare PFI hard service contract in Coventry as 鈥渢oxic鈥�.
However, he said that things are now on the mend. 鈥淭he underlying facility management business, our defence portfolio and the main building solutions businesses are operating with positive returns and with the steps taken over the last three years, 2025 will show the true underlying performance,鈥� Wardrop added.
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