Firm’s building arm racked up £62m loss last year
Losses at Bouygues UK widened last year as the firm said subcontractor failures, labour availability and building safety liabilities took the company’s cumulative losses over the past two years to more than £100m.
The firm said pre-tax losses increased to £62m from £42m last time on turnover down 15% to £326m.
In a note accompanying the accounts, Bouygues said: “There were a small number of failures of subcontractors working for the company during the year. Actions were implemented to ensure that works were able to continue with cost forecasts being revised accordingly.”
The results cover the firm’s building contracts, including its schools, hospital and university work, with the performance of its infrastructure business, such as its scheme at Hinckley Point C, recorded under other parts of the company.
Building safety provisions jumped to £116m from £62m while the firm said cash at the end of last year was up to £188m from £174m.
Meanwhile, on Friday the firm’s French parent, which also includes a media and telecoms business, announced turnover was flat at €26.5bn (£22bn) for the first six months of this year. It said its current operating profit from ongoing activities was up 20% to €747m (£631m) in the six months to June.
It said that its Equans business was pulling out of new-build social housing in the UK because of “unfavourable market conditions”.
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