Equans Regeneration has shrunk its losses by nearly 70 per cent despite “continued pressures” in the new-build market.
The contractor, which was bought by Bouygues in October 2022, posted a pre-tax loss of £38.9m for the year to 31 December 2023. This was down from £135.7m the year before.
The firm put the performance down to the “ongoing resilience and strength of our workforce”.
But Equans admitted that a decision to withdraw from certain parts of the UK last year and pressures within the new-build market had impacted its financial results.
“Continued pressures within the new-build market as well as the continued impact of the decision to not seek further construction and regeneration work in various geographical areas of the UK amounted to a £59.1m loss,” it said in its accounts.
Turnover for 2023, meanwhile, slipped slightly to £907.7m from £926m, while cash was also down to £100,000 from £869,000 the year before.
The contractor also said it had changed emphasis on the type of work it takes on and is adjusting the mix of its order book.
In February, Equans revealed it was aiming to pull out of the new-build market by the end of 2025 “in order to reposition our business and focus our construction activities exclusively within the student-accommodation market”.
In its most recent accounts, Equans said: “[We have] become more selective on traditional competitively tendered design-and-build projects and actively targeting refurbishment activities […], and sustainability activities which generate improved margins and give more control over costs and operations.”
The firm has signed extended partnerships with Birmingham and Manchester city councils, which it said will provide future revenues of £160m and £78m respectively.
The contracts will deliver responsive and planned repairs, as well as refurbishment services, to more than 50,000 council-owned homes in the two authorities until at least 2026/27, according to the contractor.
Equans has also committed to £100m worth of fire safety work for housing association Optivo, to be finished in 2028.
Looking ahead, Equans was positive. “The business continues to grow and trade in line with directors’ expectations underpinned by a strong pipeline and good operational activity of the current schemes,” it said.
