Bouygues UK has posted a third consecutive year of losses, but the company is showing signs of gradual recovery despite ongoing challenges related to subcontractor issues, labour shortages, and rising building safety liabilities.
Involved in building projects ranging from schools, to mixed-use developments, the French-owned contractor reported a pre-tax loss of £32.3 million and an operating loss of £46.9 million for the year ended 31 December 2024.
Although the losses are significant, they mark an improvement from the pre-tax losses of £62.1 million in 2023 and £41.8 million in 2022, and the £77.1 million operating loss in 2023.
Turnover rose 15.3 per cent to £375.6 million (FY2023: £325.6 million), but the company continued to face challenging market conditions, including subcontractor failures, and labour and materials shortages.
Customer warranty provisions also rose to a total of £198.3 million, including an additional allocation of £69.3 million, primarily to cover long-term building safety liabilities extending up to 30 years, added further financial pressure.
Insurance reimbursements of £48.8 million are expected to ease some of this burden.
The French parent group injected £32 million of equity, raising UK net assets to £29.4 million, while cash reserves increased to £220.9 million (FY2023: £188 million).
The year also saw new CEO Philippe Bernard, take over from Fabienne Viala in February.
SPONSORED CONTENT by CHIME
“Having an electronic platform has improved timekeeping across the workforce and provided real-time accurate reporting.” Russell O’Dwyer – Engineering Director, Timeless Building Services. Read More
Despite the losses, the company remains cautiously optimistic, with chief financial officer, Thibaut Roux, on behalf of the board, noting that while 2025 will remain tough, the company’s strategy is focused on long-term improvement.
“While [we] expect pressures on reported financial performance to remain during 2025, [we] believe that the company’s strategy should provide the foundations for improved results in future years,” he said
“[We] will continue to monitor the impact of economic conditions and further developments in relation to building safety regulation on the company and take this into account when making future operating decisions.”
Looking ahead, Bouygues UK plans to remain selective in its bidding, navigating a turbulent market and aiming for a more stable financial future.
Was this interesting? Try: Philip Hoare succeeds Leo Quinn as Balfour Beatty group chief executive
If you have a tip or story idea that fits with our publication, please contact danielle@wavenews.co.uk
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.
Notice: JavaScript is required for this content.