Skanska UK reports slump in operating profit


Skanska UK has declared steady turnover but a slump in operating profit in its latest financial results. 

Katy Dowding appointed president and CEO of Skanska UK
Katy Dowding. Credit: Skanska UK.

Group revenue for the year ended 31 December 2023 was £1.32 billion, down from £1.37 billion in the previous financial period, generating a pre-tax profit of £27.3 million (FY2022: £24.5 million), with a margin of 0.5 per cent.     

The Watford-headquartered contractor, whose UK operations mainly consist of construction and facilities management (FM) activities, generated an operating profit last year of £6.2 million, a dramatic slide from £12.7 million in the prior financial year.       

While total assets and equity were valued at £785 million, down from £878.7 million the year before, with cash reserves of £396.2 million compared to £441.4 million in FY2022. 

An interim dividend of £40 million was distributed to shareholders of the parent company, down from £65 million in the prior period.  

Profit for the year was £20.4 million, compared to £16 million in 2022.  

Major contract wins in the period include a new military facility and warehouse at RAF Molesworth in Cambridgeshire valued at £219 million as well as a £158 million fitout and construction job at the Telehouse Office in London which is incorporating a data centre.  

The group’s new recruits headcount in 2023 was 428 compared to 775 in 2022.  

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