Skanska more than doubles profit

Skanska more than doubled its profit to over £30m, after the sale of its infrastructure services company, newly released accounts show.

The contractor sold its business to M Group Services for £50m in December 2020 as part of a restructuring plan. In its accounts for the year ended 31 December 2021, Skanska said that the sale allowed it to “concentrate on the infrastructure and building markets”.

It continued: “The aim is to bring more focus to our customer relationships and service delivery, as well as create greater alignment between the company’s activities and our approach in other parts of the world.”

The sale was largely responsible for the hike in its pre-tax profit for the year to £34.7m, up from £13m the year before.

Its revenue remained static, coming in at £1.12bn, the same as the previous year, discounting operations it has discontinued, such as its infrastructure services arm.

Over the course of 2021 Skanska scooped a number of major contracts, including a £93m piling contract on HS2’s London tunnels leg. The contractor is also leading the overall London tunnels project in a joint venture with Costain and Strabag.

On top of that it picked up a £507m contract in March 2021 to build a new dual carriageway on the A428 between Milton Keynes and Cambridge, and a refurb job of an 11-storey block in London’s Canary Wharf.

Over the course of the year the company said it continued to be affected by the coronavirus pandemic, although the pandemic’s impact was mitigated through “high levels of project scrutiny and cash management”.

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