Vinci sees profits halved in 'difficult climate'

Contractor Vinci has seen a fall in UK pre-tax profit of 48% over the past year, although turnover for the firm was up 8% to £1.11bn.

Posting its results for the year to 31 December 2011, Vinci PLC, the UK arm of the French construction firm, said it had achieved turnover of £1.11 billion for 2011 - an 8% increase on 2010 - which it said was a result of “growth in existing activities”.

The firm said this mainly comprised growth in the firm’s Taylor Woodrow Division in civil engineering; strengthening its market share in its building division; as well as a “solid performance” over the year by its facilities business.

The firm said its order book over the year reached an all time high of £1.3bn, while activity in its building division was up to £588m from £545m in 2010, with health, education and retail together contributing over 75% of its contract wins in 2011.

However the results showed pre-tax profit almost halved, down 48% from £39m in 2010 to £19.8m last year.

The firm said this represented a “good performance in the continuing difficult market conditions”.

John Stanion, Vinci chief executive said: “In the current difficult economic climate, these are encouraging results, we are confident that the combination of our financial strength, market leading positions and our company heritage will ensure our continuing success in 2012 and beyond.”

The firm said it had net cash generation of £3m over the year, after PFI investments of £15m and dividends paid of £5m, and had increased cash balances at the year end to £156m - up from £150m in 2010.