Bouygues (UK) posts £74m loss in 2016
Bouygues (UK) has filed accounts for 2016 showing a pretax loss of £74.5m for the year.
Turnover for the year was £555.8m, up from £349.6m in 2015, reflecting the consolidation of J B Leadbitter and Denne Construction into Bouygues (UK) in May 2016.
In 2015 Bouygues (UK) made a loss of £19.4m before tax.
The company attributed the 2016 loss to “a limited number of projects”.
Chairman Fabienne Viala wrote in her strategic report: “The company, in common with a number of other UK contractors, has been impacted in recent years by challenging market conditions including inflation in supply chain costs.
“However, despite these impacts, many projects have maintained the expected level of margin and the company has been able to meet its clients’ expectations by maintaining a high level of quality and service.”
The Bouygues group in France has stepped in and injected a further £79m of new equity into its UK subsidiary to ensure its financial covenant is maintained.