- Record revenue of £493 million reflects the good performance of existing projects.
- Net cash increased by 10% on previous year due to effective cash management and contract structuring.
- Certainty and resilience remain firm focus with order book at £795 million.
Ferrovial Construction UK has reported a record revenue of £493 million in 2022. That is an 8.1% improvement in like-for-like terms from the previous year. This figure reflects the good performance of its existing projects. The order book at the end of 2022 was £795 million. The company has recognised an operating profit of -£30 million in 2022, whilst the net cash balance has increased 9.2% in like-for-like terms to £213 million.
Whilst the UK growth strategy is well underway, at its core is the underpinning responsibility to provide certainty and resilience. The decision was therefore taken to make a provision for a one-off exception for projected forecast losses on the Silvertown Tunnel project, principally due to external factors caused by global events, including the covid-19 outbreak, the war in Ukraine, and the resultant significant inflationary increase in labour and commodity prices. This has resulted in an overall EBIT of -£30 million for the year for the whole of the business. The firm made an underlying EBIT profit of £22 million across the rest of its portfolio.
The net cash balance has increased by 10% due to a combination of effective cash management and structuring of the company’s contracts. The contracts developed in 2022 strengthen the company’s portfolio in the UK, which to date has been involved in complex infrastructure projects such as the Crossrail Western Running Tunnels and Farringdon station, the Northern Line Extension, and the Thames Tideway Tunnel.
“We continue to build to deliver against our strategic objectives which form part of the overall Horizon 24 business plan. The impact of world events on our industry has been unprecedented and certainly came to a head over 2022. Our focus has been on financial certainty and resilience as we face the potential impact of these events with the rest of our industry. We have therefore taken the correct and prudent decision to make a provision for these factors”, said Karl Goose, Managing Director for the UK & Ireland.
Ferrovial Construction UK’s financial goals for 2023 and beyond continue to be to increase revenue sustainably, improve operating margin, grow its net cash balance, and increase its order book. The company actively tracks and pursues a range of contracts in line with its corporate strategy.
Results in the UK follow the global earnings of Ferrovial in 2022, which saw an increase of 7.7% of its EBITDA to €728 million and a 4.2% rise of its revenue in like-for-like terms in 2022, amounting to €7.6bn. These figures reflect the significant growth of traffic and associated performance by the Toll Roads division, particularly from managed lanes in the United States. Specifically, global Construction revenue increased by 2.2% in like-for-like terms, supported by the Polish subsidiary.
Ferrovial, a leading global infrastructure operator, is committed to developing sustainable solutions. It is a member of Spain’s blue-chip IBEX 35 index and included in the Dow Jones Sustainability Index and FTSE4Good; all its operations are conducted in compliance with the principles of the UN Global Compact, which the company adopted in 2002.