黑洞社区

The chief executive of Skanska UK Mike Putnam has slammed competitors for submitting loss-making bids on jobs.

Speaking to 黑洞社区 after the contractor posted solid full-year results yesterday, Putnam said the firm鈥檚 strategy was to be 鈥渟elective鈥� and it would not 鈥済o for lowest price鈥�.

Putnam warned the problem was particularly noticeable in the commercial sector. He said: 鈥淲hen the market goes into recession clients and contractors revert to type. We have to respond to [the market] but we try to be selective.

鈥淲e won鈥檛 go and take loss leaders. For those that do it will come home to roost.鈥�

Announcing its results for the year to 31 December 2012, the contractor posted revenue of 拢1.16bn, down 4.5% on 拢1.22bn the previous year.

Operating profit rose 4.2% to 拢42.1m from 拢40.4m, with operating margins up from 3.3% 3.6%.

The firm said its orders rose 23% from 拢878m to 拢1.08bn, while the order backlog was down 5% 拢1.89bn to 拢1.8bn.

Putnam said the firm鈥檚 primary focus was on improving operating profit and margin.

He added the firm is primarily targeting growth in its fledgling commercial development division and within the energy and infrastructure sectors.

Putnam said the firm was 鈥渕ore optimistic鈥� about the infrastructure sector 鈥� particular rail and roads 鈥� after recent government focus on the sector.

He said the wind sector was a 鈥渂ig opportunity鈥� for the UK division after three years of investment, despite the fact it has not yet secured a single contract.

Investment included striking a joint venture last year to deliver foundations for offshore wind turbines.

However Putnam called for greater 鈥渃larification鈥� from government on energy policy, including in the under-consideration Energy Bill, particularly on electricity strike prices.

Putnam said the firm was maintaining market share in the commercial sector, despite losing out in the race to build London鈥檚 拢290m Principal Place tower after developer Great Portland Estates sold the scheme to Brookfield last January. Brookfield will now build the scheme 鈥� which Skanska was previously shortlisted for against Sir Robert McAlpine 鈥� once a pre-let is secured.

Putnam noted that the firm completed the tallest tower in the City of London Heron Tower last year and is now doing 鈥渕ore medium-sized schemes鈥�.

He said the firm will grow its fledgling residential business 鈥渜uite slowly鈥� and was 鈥渕oving ahead as planned鈥� with both 鈥渂uilding and selling鈥� on its first project in Cambridge.

Skanska globally grew revenue 8% to SEK 131.9bn (拢13.2bn)  from SEK 122.5bn (拢12.3bn) and operating profit fell 49% to SEK 4.6bn (拢460m) from SEK 9.1bn (拢910m).

Putnam said the global business was primarily targeting growth in Swedish construction, UK construction, US civil and buildings 鈥� particularly in PPPs, in Poland, infrastructure 鈥� particularly PFI and PPP, commercial development.