Disclosure made as firm sees 2021 profit jump by more than 40%
Bouygues has said it expects provisions on loss-making contracts to be more than 拢4m, according to its latest report and accounts.
The firm said contract provisions at the end of last year totalled just under 拢4.3m which in a note it said 鈥渞elate to expected losses to completion on construction contracts in progress鈥�.
Bouygues, which earlier this year finally finished a state-of-the-art cancer hospital for UCLH in the heart of London more than two years after it was supposed to open, said overall provisions stood at 拢5.4m and included 拢1.1m of restructuring costs which 鈥渞elates to further streamlining of the company鈥檚 business unit organisation鈥�.
The accounts, which cover the year to December 2021, said Bouygues expected the restructuring to have been completed by the summer.
Bouygues, which has also been working on the Hinkley Point C scheme in Somerset and is bidding several high-profile projects including a new facility to replace Moorfields Eye Hospital and a 拢150m science park scheme in Oxford, said revenue last year was up 15% to 拢484m. Pre-tax profit was up 43% to 拢835,000.
In the accounts, which were signed off in March but only filed at Companies House this week, Bouygues said it 鈥渇aced cost increases due to inflation on some of its projects and additional costs linked to fire safety related matters [but] these were more than offset by an increased volume of profitable trading鈥�.
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