French conglomerate says construction profits will improve this year
Bouygues said it expected to see margins at its construction arm improve in 2020 after it posted a 鈧�31m (拢26m) dip in operating profit last year.
The French giant said its construction business generated 鈧�29.5bn (拢25bn) in turnover in the year to 31 December 2019, up 6%.
Despite this increase, the firm鈥檚 construction arm, which last year was handed a 拢40m construction contract to build the new Hopkins-designed school of management at Bath university (pictured), reported an operating profit down 3.3% at 鈧�910m (拢758m), resulting in a margin of 3.1%, versus 3.4% in 2018.
The group, which announced last November it was closing its Birmingham and Manchester offices due to 鈥渁 challenging construction market鈥� in the North-west and the Midlands, said its Colas rail business, currently working in the UK with Network Rail on projects worth 鈧�553m (拢460m), broke even during last year.
Bouygues said its construction business had recovered quickly from a cyber attack launched on the business in January this year, adding that the impact on the operational and commercial activity of its systems had been 鈥渧ery low鈥�.
Total group turnover was 鈧�38bn (拢32bn), up 7%, while group operating profit dipped 7% 鈧�1.7bn (拢1.4bn).
Bouygues also owns TF1, France鈥檚 leading TV channel, which accounted for 15% of the group鈥檚 overall operating profit.
No comments yet