Bouygues UK made a pre-tax loss of £41.9m in the year to 31st December 2022 on turnover of £382.6m. By comparison, in 2021 it had made a profit of £835,000 on turnover of £483.6m.
Operating loss for 2022 was £46.2m (2021: £1.5m profit).
Finance director Jean Luc Midena blamed the loss on “cost increases due to inflation, availability of labour, the conflict in Ukraine and the risk of post completion liabilities arising from recent legislative changes relating to building safety.”
He added: “Subcontractors continued to be impacted during the year in regard to delivery of services as a result of challenging market conditions. There was a small number of failures of subcontractors working for the company during the year. The company had carried out reviews of subcontractors to ensure their ability to complete works in line with their contractual requirements and had business continuity plans in place which were implemented to ensure that works were able to continue. Cost forecasts were revised accordingly.”
During the year the French-owned building contractor issued additional share capital of £47m, leading to an increase in total equity to £29m (2021: £18m). The cash position of the company at the end of the year was £174m.