Last updated May 11th 2022
VINCI Construction UK
VINCI Construction UK is a national construction and facilities company and part of the giant French group Vinci, one of Europe’s largest contractors.
Based in Watford, Vinci operates nationally across the UK, offering a fully-integrated service and has a turnover of just under £1.2 billion. The company operates through three main divisions: building, civil engineering and facilities. A technology centre provides technical support and innovation across the business.
Today, the company works across most major sectors. Its companies in the UK include BachySoletanche, Spiecapag, Eurovia, Freyssinet, Nuvia, Taylor Woodrow, VINCI Construction GrandsProjets and VINCI Energies. Vinci Construction UK employs around 3,280 staff and in recent years, it has had a focus on productivity through innovation, collaboration and knowledge-sharing. HS2 is set to be the group’s largest civils clients in coming years.
Unveiling the UK group”s latest results in May 2022, chairman Gilles Goddard said the business has rebounded strongly since the pandemic and bidding opportunities remain strong and the company”s order book exceeded £1.6 billion. But he added that the economic environment remains challenging and high inflation required the group to be ‘ever more selective in our approach and agile in delivery.”
Financials
To view the financials for VINCI Construction UK, visit Companies House and use Company ID 02295904
The group’s latest report for the year to December 2021, shows that it has bounced back strongly from Covid and each of its business lines – building, facilities and Taylor Woodrow (civils) – improved their operating margin, helping the group raise its net margin to 2% whilst it also generated £300 million of cash. Pre-tax profits almost doubled to £23.6 million from £12.51 previously and operating profit rose to £23.77 million from £12.15 million previously. Group revenues rose to £1.17 billion from £849.2 million meanwhile, the group”s cash position stood at £312.5 million at the year-end compared to £252 million previously.
Civil Engineering
The group”s national civil engineering arm, Taylor Woodrow, is focused on major projects and its strategic partnerships include mainline rail electrification and HS2. More works undertaken on the main works contract for HS2 meant VINCI”s civils business saw turnover rise to £319 million in 2021, up from £171 million in 2020. The division is forecasting £366 million of turnover in the current year.
The firm is working at Old Oak Common Station and its main works civils N1 N2 contracts have been ramped up and HS2 will remain a significant customer.
In the energy sector, Vinci has secured work at the Fawley FAST project and Teeside energy hub and has won work on four commissions for ECI works on London stations for TfL. Current key energy projects at the division include Eco Park South, the Isle of Grain Gast Tanks and the Southampton to London Pipeline.
Today, the division has a pipeline worth over £1 billion for 2023-27 and it is optimistic on the outlook for infrastructure spending. London remains a strong market and the firm has teams in Enfield, Anglia, Basingstoke and the South West. It sees significant growth potential in energy to meet increased electricity demand
In highways, Vinci is involved in design work on the A358 project. It is also targeting various local authority schemes including projects at Southern on Sea, Melksham and Chippenham and major schemes on the M5. On rail it is working for Abellio at Norwich Crown point and expects to bid for depots on its West Midland train franchise.
Building
Turnover at Vinci UK”s building division rose to rose to £485 in 2021 up from £381 million previously as the business recovered from Covid and the division made a profit of £11.7 million, up from £8.3 million, giving a margin of 2.4%. Its workload for 2022 is expected to remain similar and it has a significant preferred bidder workload, worth over £900 million with much of it in the North West and South East.
The building division has a large health, education, student accomodation, commercial/industrial/retail and leisure workload. Vinci UK has places on public frameworks for the Department of Health and Ministry of Justice and has a strong track record in student accomodation.
In April 2022 Integrated Health Projects (IHP) – a Vinci/Sir Robert McAlpine 20-year alliance – was reappointed to the latest healthcare framework, ProCure23, part of Crown Commercial Service”s Construction Works and Associated Services 2 Framework.
Meanwhile, Vinci Building recently won an £11 million contract from The Coventry and Rugby Hospital Company to increase emergency capacity at University Hospitals Coventry and Warwickshire (UHCW) NHS Trust.
In the housing sector, in spring 2022 VSM – a jv between Vinci UK Developments and St Modwen Developments – received planning permission for a 26-storey residential tower in London’s Nine Elms, London. Apex 1 will involve 201 new homes and retail space on the New Covent Garden Market redevelopment.
Early in 2022, Vinci Building won a place on the new Procure Partnerships North West Contractor Framework.The firm has won places on three of the four main value bands; lot 1: £1m – £5m lot 2: £5m – £15m and lot 3: £15m – £30m. Procure Partnerships has delivered over 150 construction projects over the past four years.
Meanwhile, in late 2021, Vinci won one of the UK’s largest Passivhaus (energy efficient ) developments at the University of the West of England in Bristol to provide a student accommodation scheme with 900 bedrooms across over 26,000 sq m of space.
Facilities
VINCI Facilities is a leading FM and maintenance provider to the private and public sectors. It focuses on facilities management, technical services and building solutions and on key sectors in retail, professional and financial services, defence, central and local government, health and social housing. Turnover rose to £365 million in 2021 above budget, and the margin recovered to 3%. The division has seen a surge in FM and construction activity post-lockdown and its long term order book remains at a ”very healthy” £1.3 billion.
Key business wins include a significant MoD Future Defence Infrastructure Services contract covering the South East estate which it expects to be worth £100 million p.a.over the next seven years. Vinci has also won new work with Islington BC and contracts with UCL and McCormack as well as extensions on contracts for Shell, TfL,The Royal Parks, Lincs. CC, the MoJ and Welsh Government and an EV charging rollout programme for the Royal Mail.
Glenigan Data
In terms of work on major new projects, recent figures from Glenigan show that Vinci ranked 15th among major UK contractors in a recent year (to March 2022) with 34 significant contracts worth a total of £857.1 million, of which £346.1 million was building and £511 million was civils.
Glenigan data also shows that Vinci was the third largest contractor in the South East in 2021 with four major contracts worth £359 million (£358 of which was civils). It was also the sixth largest in the North West with seven major contracts worth £132.5 million (£128 million of which was building).
Conclusion: Short and long term potential supported by technical expertise
Vinci has operated in Britain for 90 years and it retains an eye for the long term. Its services cover all aspects of a project from conception to decommissioning and often involve complex project management supported by its Technology Centre or other VINCI companies. The firm has a strong regional presence across its building and civil engineering divisions and good potential in the growing energy & electricity sector. Its rail workload in particular is set to remain strong thanks to HS2 and other projects. Having put in a solid performance during the pandemic, the group appears to be resuming its progress towards healthy returns. Vinci has a business model based on short and long-term cycles – which should enable it to prosper in the long term and reap the benefits of a more selective approach.
Winning work with Vinci Construction UK
Vinci Construction UK has a supply chain strategy which it says is designed to encourage openness, trust and collaboration. Guidelines on the group”s approach to its supply chain can be seen on a dedicated page on its website here. The firm is a partner to the Supply Chain Sustainability School and for stage one approval would-be supplier need to be registered with ConstructionLine and accredited under one of the safety schemes in procurement.
Contacts
Neil Mant, Supply Chain and Procurement Director
Tel: 01923 233433
supply.chain@vinciconstruction.co.uk
Trevor Harlock, Supply Chain Manager, Vinci Construction UK
Tel: 01923 233433
Email trevor.harlock@vinciconstruction.co.uk
Scott Grainger, Procurement Manager, Taylor Woodrow
Tel: 01923 233433
Email scott.grainger@vinciconstruction.co.uk