Last updated March 2nd 2023
Skanska UK plc
Skanska UK is a leading player in PFI/PPP schemes covering healthcare, education, defence and transport and commercial construction. It operates nationally but has a strong presence in London and the South East, employs around 3,850 staff and has a continuing turnover of some £1.12 billion.
The firm works across the construction, development and infrastructure process – from design to FM. It has specialist skills ranging from piling and foundations, to M & E, civils and utilities work, both in the private and public sectors.
Skanska UK is part of the Stockholm-based Skanska Group, which is listed on the Swedish stock exchange and which dates from 1887 when Aktiebolaget Skanska Cementgjuteriet was founded as a concrete product manufacturer.
Key areas where Skanska UK has invested to expand include the energy sector (deep sea off-shore wind farms, gas-fired power stations and smart meter installation), commercial property development, green retrofit of existing buildings, water infrastructure, building information modelling and engineering, manufacturing and pre-fabrication off-site.
A recent re-organisation reduced the number of operating units from 9 to 7 and led to the group pulling out of highways, street and rail maintenance. The group sold its infrastructure services business in 2021 and closed its utilities unit. Today, Skanska UK is focusing on the infrastructure and building markets.
Skanska UK was the contractor on the £1 billion redevelopment of St Bartholomew”s and The Royal London, the UK”s biggest hospital project as well as on the £1 billion widening of the M25, through a jv. It also worked widely on Crossrail. Early in 2018, the firm opened a permanent office in Manchester.
Together with Costain and Strabag, Skanska UK is developing the design and target cost of Lots S1 and S2 between London and Birmingham on HS2 under an early contractor involvement agreement. The company secured a key HS2 contract during 2020 worth over £1 billion to the group. In early 2022, the joint venture began assembling the London tunnels section of the contract.Gregor Craig, who joined the group in 2015 and has worked at John Laing, Wates and Carillion, took over as Skanska UK”s president from Mike Putnam and CEO.
Meanwhile, BoKlok UK, a low-cost home provider, jointly owned by Skanska and IKEA, has unveiled a new joint venture to deliver modular homes. Skanska UK was named the Most Innovative Contractor at the Building Innovation Awards 2021.
The group has recently launched a Business Plan 2024 aimed at increasing its share of work in its most successful sectors and growing revenues with existing customers.
Financials
To view the financials for Skanska UK Plc, visit Companies House and use Company ID 00784752.
Skanska UK”s latest results show improved operating margins as its ”laser focus” plan to remain profitable and sustainable has taken effect. In the year to December 2021, the company reported a profit before interest and tax on continuing operations of £33.7 million, up from £12.2 million previously and giving a margin of 3%. Revenues on continuing operations were virtually unchanged at £1,122.7 million. Pre-tax profits rose to £34.75 million, up from £13 million. Meanwhile, the company ended the year with cash of £519.6 million down from £473.7 million previously and the company has no debt.
Services
Skanska provides a wide range of construction and facilities management services. Its specialist capabilities cover : ceilings, plasterwork, drylining and passive fire protection; design and environmental consultancy; fabrications and servicing; Intellekt: an intelligent buildings service; mechanical, electrical and public health engineering; multi-utilities; network solutions; piling, foundations and ground engineering. The group also has four specialist teams: Cementation Skanska; Clark & Fenn Skanska; Fabrications and SRW.
Skanska UK”s hq is in Rickmansworth in Herts and it has offices in London, Birmingham, Bristol, Doncaster, Ipswich, Bridgend and Motherwell
In infrastructure, key recent contract wins include the A46 Newark Bypass, a £400-500 million scheme where Skanska will undertake the design and construction of the widening of the A46 to a dual carriageway.
Meanwhile in summer 2022, the go-ahead was given for work to start on National Highways A428 Black Cat to Caxton Gibbet improvements scheme where Skanska is providing the design and build of the scheme, working with Mott MacDonald.
On HS2, the Skanska Costain STRABAG jv launched the first of six tunnel boring machines that will dig over 26 miles of tunnels under the capital in autumn 2022.
Meanwhile in the commercial building sector, Skanska is installing the mechanical, electrical and public health services and is working on the construction at Ropemaker Place, one of the City’s largest developments involving some 450,000 sq ft of office space over 26 floors, plus retail space and which was topped out late in 2022. The firm handed over the £57 million mixed-use Featherstone Building commercial development to Derwent London in spring 2022.
In the defence sector in late spring 2022, Skanska UK won a £259 million MoD contract to deliver the Vehicle Storage Support Programme at Tewkesbury through the Defence Infrastructure Organisation and working with Mace.
Meanwhile, in the public sector, Skanska UK’s building operating unit won a place in early 2020 on Pagabo’s £10 billion, six-year major works framework. The initiative links suppliers and public sector clients on flexible procurement and gives Skanska UK the chance to work for a wide range of public sector capital works.
In late 2021, Skanska won a place on Lot 2 of the Department for Education’s major construction projects framework, worth up to £7 billion over four years. It will involve the school rebuilding programme, free school programme, further education colleges programme and improvement work.
Glenigan data
Glenigan data shows Skanska UK ranked as the 12th largest contractor in the industry. The company secured seven major contracts in the year to December 2022 worth £990.7 million and which were divided between civils, £345 million and building £645.7 million.
Conclusion: Reviving margins as it maintains orders
Skanska UK benefits from being part of its giant Swedish parent group but over the past decade it has emerged as a major British contractor in its own right. Today, the company’s infrastructure business is taking advantage of increased spending in the sector and its commercial sector is a key player in the large office market, particularly in London. Whilst the group faces some competitive markets, its action to improve margins has paid off and its order book appears to be in good shape. Meanwhile, the group”s strong relationships with key clients such as HS2, Network Rail and the Highways Agency and the depth and spread of its UK operations, together with the strong outlook for infrastructure markets should enable it to produce steadily improving results.
Winning work with Skanska UK
Skanska UK’s business model is to integrate its core disciplines and work together with its clients, partners and supply chain on project delivery. The company has a focus on sustainable solutions and it aims to be a leader in green construction, health & safety and business ethics.
Skanska spends £1.3 billion annually with its 5,750 suppliers and works to develop collaborative relationships. Suppliers interested in working with the group can register on its website at https://www.skanska.co.uk/about-skanska/supply-chain/
Contacts:
Dale Turner, Director of Procurement and Supply Chain at Skanska UK
Email dale.turner@skanska.co.uk
Tel 01923 776666
Paul Nutton, Head of Procurement & Supply Chain at Skanska UK
Email paul.nutton@skanska.co.uk
Tel : 01923 423843