Bouygues UK has earmarked nearly £4.3m for provisions on expected loss-making contracts.
In its accounts for the year to 31 December 2021, issued this week, the contactor said its provisions related to “expected losses to completion on construction contracts in progress”. It did not name the specific projects.
The results showed the UK arm of the French multinational saw its pre-tax profit rise slightly to £835,000 compared with £585,000 in 2020.
Turnover stood at £483.6m, against £420.3m the previous year. As a result, its pre-tax margin stood at just 0.2 per cent, barely changed from last year’s 0.1 per cent.
The firm’s profit after tax rose to £1.13m from £370,000 in 2020, helped in part by a £298,000 tax rebate.
The company said it had “faced cost increases due to inflation on some of its projects and additional costs linked to fire-safety related maters” though it said that these were “more than” offset by an increased volume of profitable trading.