WET News

leaders 2017 31 Skanska wins a host of deals Record order book levels for Trant SkanSka Uk Maple Cross House Rickmansworth Tel: 01923 776666 www.skanska.co.uk TRanT EnginEERing Rushington House Southampton SO40 9LT Tel: 023 8066 5544 www.trant.co.uk the LeADeRS 2017 Skanska UK's construction business recorded operating income (profit) of £35.1M in 2016 on revenues of almost £1.7bn. During this period, £1.8bn of orders were booked by Skanska UK. During the year Skanska won a host of new contracts, contract extensions and framework appointments. The company says these successes demonstrate very clearly the breadth of its portfolio across public, regulated and private sectors. "This provides our business with both diversity and resilience in a highly competitive market and in the face of the uncertainty created by the EU referendum last June. "A 'book-to-build' ratio of 107% is an increase on what we reported this time last year and our full pipeline of work for this year, including the full value of frameworks, is very healthy." In Bristol, in 2016, four projects were handed over Trant, which continues to focus on civil and mechanical electrical engineering, has focused on quality projects while maintaining its frameworks and term contracts in order to maintain its resilience in the face of tough competition and a challenging market place. According to group's latest reported results, its spread of activities "ensured gratifying results" following the transition from AMP5 to AMP6. Its framework contracts have been an aspect it has focused on during the year, leading to consolidation within three operational sectors and targeting improvements to its margins. Trant adds that its order book stands at £120M, a recond level, which ensures its sustainability as it moves towards its "next chapter". The company's water company clients include, Portsmouth Water, Wessex Water, United Utilities and creating more than 500 much-needed school places and work commenced at a further three schools. This brings the total number of school projects completed under Skanska's Local Education Partnership (LEP) to 46 in the last 10 years. The company says it pleased that it can once again report a positive financial performance for Skanska UK. "It is equally important to us that we deliver these results in a responsible way. "Last year, we made good Southern Water. The company's work with United Utilities is for industrial process and production. The three-year contract has an option to extend by a further two years. A range of services are covered in the framework contract, which is valued at up to £50M across three D&B Suppliers, of which Trant Engineering is one. They include: • Provision of specialist OT front-end design progress in all of our sustainability areas of health and safety, ethics, green, diversity and inclusion and corporate community investment." Skanska is embracing the digital world and BIM, mobile productivity tools, drones, and virtual and augmented reality are becoming increasingly common across Business Units. These technologies improving the certainty and efficiency of project delivery, and smarter design productivity. services for projects to meet the various business requirements for end-to-end operational data • Investigation of suitable technology and developing solution feasibility studies • Defining solutions with user requirements, construction scope, interfaces, constraints estimates and project management services • Turnkey delivery of the implementation phase THE nUMBERS 2013 2014 2015 % CHangE Sales £M 1,120.7 1,260.5 1,383.5 10 Gross profit £M 121.1 123.5 118.2 -4 Operating profit £M 40.0 38.0 40.6 7 Pre-tax profit £M 44.2 41.3 42.1 2 Staff 4,360 5,174 5,312 3 Net assets £M 257.7 254.1 277.0 9 THE RaTiOS 2013 2014 2015 % CHangE 5yr aVE. Return on capital % 17.1 16.2 15.2 -6 17.6 Gross margin % 10.8 9.8 8.5 -13 10.6 Operating margin % 3.6 3.0 2.9 -3 3.3 Net margin % 3.9 3.3 3.0 -7 3.6 Sales/employee £K 257.0 243.6 260.4 7 265.0 THE nUMBERS 2013 2014 2015 % CHangE Sales £M 79.4 84.2 78.4 -7 Gross profit £M 7.3 6.5 6.8 4 Operating profit £M 0.8 1.3 1.8 36 Pre-tax profit £M 0.6 1.3 1.6 21 Staff 538 528 495 -6 Net assets £M 5.3 6.2 7.2 16 THE RaTiOS 2013 2014 2015 % CHangE 5yr aVE. Return on capital % 11.3 21.6 22.5 4 19.4 Gross margin % 9.1 7.8 8.7 12 9.4 Operating margin % 1.0 1.5 2.2 46 1.6 Net margin % 0.8 1.6 2.1 30 1.5 Sales/employee £K 147.6 159.4 158.4 -1 147.3

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