The accounts of Eurovia UK, part of the French Vinci group, show a 6.2% increase in consolidated sales to € 592 million.
The margin improved from 3.4% to 3.6%.
The Group’s total sales, including its stake in joint ventures, rose 3.8% to £ 782 million. The order backlog at year-end was unchanged at £ 1.2 billion. Cash at banks and cash on hand was £ 131.8 million.
Eurovia UK continued road maintenance activities during the pandemic, pausing major infrastructure projects only briefly in the first lockdown to develop new operating procedures in accordance with industry guidelines.
The Isle of Wight contract is still loss-making. Ringway Island Roads Ltd. maintains the roads under a private finance contract for Vinci Concessions. The contract began in 2013 and was problematic from the start for various reasons, mainly island policy.
“The contract has been running at significant losses for many years,” admitted CEO Scott Wardrop. It made a loss of £ 11.9 million in 2020.
In the annual report, CEO Scott Wardrop writes: “If we look back on the last decade (2010-19) we can see the profound transformation of our UK businesses. Sales grew by an average of 3% per year, but more importantly, profitability in our industry shifted from consistently low margins to a stable reference level. We achieved this achievement in the context of UK austerity thanks to our strong management culture, continued investment in self-supply and our discipline to focus on our areas of excellence in the motorway sector.
“The next decade looks like a land of new challenges and we are confident that as a team with multiple highways specializations we can address them. Our focus will not be on helping our clients cope with the burden of sovereign debt issued during the crisis and the government’s Fall Expenditure Review (CSR 2021). “
Eurovia UK comprises the Ringway motorway maintenance business and Eurovia’s road and airport construction company. The joint ventures include Bear Scotland with material supplier Breedon and consulting engineer Jacobs, as well as Ringway Jacobs.