Vinci UK Construction arm returns to profit

Vinci construction’s operation in the UK has returned to profit after two years of losses due to problem contracts.

The group, which consists of the building and Taylor Woodrow civils divisions, posted an £11.1m post-tax profit last year after suffering a £68m loss in 2015 and £217m loss in 2014.

The return to profitability at both civils and building operations saw group construction margins return to 1%, marking the conclusion of several legacy projects like the Nottingham Tram.

It comes after chairman and chief executive Bruno Dupety introduced more selective bidding and a more rigorous approach to operations.

This saw turnover remain broadly flat for the year at £949m and has now put Vinci on a firm footing, said Dupety.

He added: “We are starting the year with a total order book worth £1.047bnand have 75 % of our 2017 budget secured.

“We will continue to work on improving efficiency, delivery and productivity of our operations throughout the year. We are confident the net profit will be at least at the same level in 2017.”

The firm’s cash balance at the year end stood at £63m.