Accounts show firm claimed 拢4m in furlough money last year

Exceptional items of more than 拢20m helped knock the edge of an improved performance at Skanska鈥檚 UK business last year with the firm seeing profit from its continuing business jump by more than one third.

Skanska did not spell out what the 拢21.7m in provisions was for but said without it it would have posted an underlying operating profit of 拢44.3m and operating margins of 3%.

blossom street

Skanska is working on the Blossom Street mixed-use scheme for British Land on the City fringe near Shoreditch

Skanska completed the sale of its 拢334m turnover infrastructure services division to M Group Services in April this year, with the firm taking a 拢31.5m profit on the deal.

It said pre-tax profit in 2020 from continuing operations was up 36% to 拢13m while profit from its offloaded business more than doubled to 拢9.4m. Overall group pre-tax profit was up 57% to 拢22.4m.

The firm, whose major wins during the period included the 拢240m Ropemaker Street scheme in the City for Great Elm Assets and the 拢180m Blossom Street development for British Land, said turnover was down 19% to 拢1.5bn, with income from continuing operations falling 23% to 拢1.1bn.

The accounts show that Skanska claimed just over 拢4m from the government鈥檚 Coronavirus Job Retention Scheme.

Cash reserves stood at 拢422.4m at the end of the year, down from 拢473.7m in 2019. It said the fall this was mainly down to a 拢35m dividend payment to its Swedish parent for the 2019 and 2020 financial years.