{"id":526827,"date":"2025-08-13T12:58:05","date_gmt":"2025-08-13T11:58:05","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=526827"},"modified":"2025-08-13T13:01:47","modified_gmt":"2025-08-13T12:01:47","slug":"vinci-storms-into-profit-despite-ongoing-pfi-and-fire-safety-issues","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/contractors\/vinci\/vinci-storms-into-profit-despite-ongoing-pfi-and-fire-safety-issues-13-08-2025\/","title":{"rendered":"Vinci storms into profit despite ongoing PFI and fire-safety issues"},"content":{"rendered":"

Vinci has returned to profit after a strong showing from three of its biggest subsidiaries.<\/span><\/p>\n

The UK\u2019s<\/span> eighth-biggest contractor<\/span><\/a> secured a pre-tax profit of \u00a369.3m in the 12 months to 31 December 2024, a year after<\/span> inflation and provisions pushed it to a pre-tax loss<\/span><\/a> of \u00a36.4m.<\/span><\/p>\n

The accounts \u2013 for Vinci Construction Holding Limited \u2013 incorporate Eurovia, Ringway, Taylor Woodrow, Vinci Building and Vinci Facilities.<\/span><\/p>\n

Vinci<\/span><\/a> Construction Holding UK chief executive Scott Wardrop put his business\u2019 success down to a reorganisation of the firm to include one shared services team, which \u201cdeliver[ed] significantly improved results\u201d.<\/span><\/p>\n

Turnover excluding joint-venture activity came in at \u00a32.3bn, up on \u00a32.1bn the year before. Including JV activity, Vinci Construction\u2019s turnover was \u00a32.5bn, up from \u00a32.3bn.<\/span><\/p>\n

The firm\u2019s cash level stood at \u00a3597.1m, compared with \u00a3569m previously.<\/span><\/p>\n\n\n\n\n\n\n\n\n
Business<\/span><\/strong><\/td>\nRevenue<\/strong> <\/span><\/td>\nChange on last year<\/span><\/strong><\/td>\nOperating profit\/loss<\/span><\/strong><\/td>\nChange on last year<\/span><\/strong><\/td>\n<\/tr>\n
Eurovia<\/span><\/td>\n\u00a3197m<\/span><\/td>\n11%<\/span><\/td>\n\u00a310.1m<\/span><\/td>\n5.1%<\/span><\/td>\n<\/tr>\n
Ringway<\/span><\/td>\n\u00a3565m<\/span><\/td>\n8%<\/span><\/td>\n\u00a329.3m<\/span><\/td>\n5.2%<\/span><\/td>\n<\/tr>\n
Taylor Woodrow<\/span><\/td>\n\u00a3381m<\/span><\/td>\n-3%<\/span><\/td>\n\u00a317.1m<\/span><\/td>\n4.5%<\/span><\/td>\n<\/tr>\n
Vinci Building<\/span><\/td>\n\u00a3606m<\/span><\/td>\n9%<\/span><\/td>\n\u00a310.7m<\/span><\/td>\n1.8%<\/span><\/td>\n<\/tr>\n
Vinci Facilities<\/span><\/td>\n\u00a3598m<\/span><\/td>\n9%<\/span><\/td>\n-\u00a318.9m<\/span><\/td>\n-3.2%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u201cExceptional results\u201d at Vinci\u2019s Eurovia, Ringway and Taylor Woodrow businesses drove the improved performance, Wardrop said. The three firms recorded operating profits of 5.1 per cent, 5.2 per cent and 4.5 per cent respectively.<\/span><\/p>\n

Eurovia mainly operates in the highways sector, and tabled the highest revenue increase of 11 per cent, while Ringway is Vinci\u2019s highways-services business. Taylor Woodrow operates across the civil engineering sector.<\/span><\/p>\n

But Wardrop added that \u201cDue to the impact of the significant provisions made for Vinci Building and Vinci Facilities risks, the group\u2019s [\u2026] full-year trading was suppressed\u201d \u2013\u00a0 referring to building-safety costs, fixed-price contracts and continued issues with PFI contracts.<\/span><\/p>\n

Vinci Facilities was the only business to record an operating loss \u2013 of 3.2 per cent \u2013 after it continued to struggle with a \u201ctoxic\u201d healthcare PFI contract at Coventry Hospital, Wardrop said.<\/span><\/p>\n

\u201cThe contracts under legacy PFI contract terms have proved very difficult to manage and operate,\u201d he said, adding that there had been \u201csevere tensions\u201d between the client, contractor and subcontractors on the job.<\/span><\/p>\n

Fire-safety work, meanwhile, hit Vinci Building\u2019s operating profit, which came in at 1.8 per cent. Wardrop pointed to the impact of the government\u2019s decision to extend fire-safety liability to 30 years as part of the Building Safety Act.<\/span><\/p>\n

Vinci Building\u2019s results were also affected by two unnamed fixed-price contracts that were signed before Covid.<\/span><\/p>\n

Although Wardrop did not comment further on those projects, he said Vinci had been operating in a \u201csustained volatile business environment\u201d amid the impact of the pandemic, the Russian invasion of Ukraine, the trade war sparked by the US, and the change in government.<\/span><\/p>\n

Vinci tabled \u00a3254.8m worth of provisions for the year, slightly down on \u00a3274.9m in 2023. Most of that was for losses on completion of construction projects (\u00a387.7m), and proactive and reactive maintenance work following the completion of projects (\u00a380.5m).<\/span><\/p>\n

Looking ahead, Vinci recorded an order book of \u00a33.5bn at the end of 2024, up from \u00a32.8bn. The increase was largely down to Vinci Facilities, where forward orders nearly doubled from \u00a3488m to \u00a3924.m.<\/span><\/p>\n

Vinci\u2019s accounts do not include its latest acquisition, after it signed a share-purchase agreement to acquire the UK\u2019s 37th biggest contractor, FM Conway, last October. The<\/span> sale was confirmed in January<\/span><\/a>, and will add more thatn<\/span> \u00a3500m to Vinci\u2019s overall turnover<\/span><\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Vinci has returned to profit after a strong showing from three of its biggest subsidiaries. The UK\u2019s eighth-biggest contractor secured a pre-tax profit of \u00a369.3m in the 12 months to 31 December 2024, a year after inflation and provisions pushed it to a pre-tax loss of \u00a36.4m. The accounts \u2013 for Vinci Construction Holding Limited …<\/p>\n","protected":false},"author":90643,"featured_media":437987,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[552,544],"tags":[],"class_list":["post-526827","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial","category-vinci","issue-online-news"],"yoast_head":"\nVinci storms into profit despite ongoing PFI and fire-safety issues | Construction News<\/title>\n<meta name=\"description\" content=\"Vinci has returned to profit after a strong showing from three of its biggest subsidiaries. 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