Bouygues UK has posted a £42m pre-tax loss after virtually doubling its building-safety provisions.
The contractor’s accounts for the yr to 31 December 2022 confirmed it slumped from an £835,000 pre-tax revenue in 2021. Its turnover additionally slid, to £382m from £484m within the yr earlier than.
The French-owned firm, which delivers colleges, housing, scholar lodging and healthcare amenities, elevated its “buyer guarantee provisions” – the cash put aside for potential post-completion liabilities within the yr – to £62m from £31.5m.
In a press release launched with the accounts, chief monetary officer Jean Luc Midena stated: “The loss for the yr arose on account of value will increase attributable to inflation, availability of labour, the battle in Ukraine and the danger of post-completion liabilities arising from latest legislative modifications referring to constructing security.”
No particular schemes have been named within the accounts. A raft of latest security measures have come into pressure for the reason that begin of 2022, together with the extension of liability for defects from six to 30 years underneath the Constructing Security Act.
Midena additionally blamed the failure of a “small variety of subcontractors working for the corporate” for its points and stated the agency needed to revise value forecasts as a result of potential of different failures.
A week before the results were released, Bouygues UK introduced the retirement of chief government Rob Bradley and a restructuring of its operations.
It is going to be divided into three enterprise models, comprised of two regional divisions – London and the South East, and the South West and Wales – in addition to a complex-projects unit centered on healthcare, science and analysis initiatives throughout the UK.
The 2022 accounts included a £1m provision for a corporation restructure that was stated to be due for completion by the tip of June 2023.
Fabienne Viala has changed Bradley as chief government and can also be persevering with in her roles as chair and UK nation director of dad or mum firm Bouygues Building.
The accounts didn’t embrace Bouygues’ work on infrastructure schemes akin to HS2 or Hinkley Level, that are being delivered by sister firm Bouygues Travaux Publics and different elements of Bouygues Building.
