Ferrovial’s UK contracting arm has almost tripled its pre-tax profit after its revenue exceeded £500m for the second year running.
The London-based subsidiary of the Spanish conglomerate recorded a pre-tax profit of £14.1m in the year to 31 December 2024, compared with £5.5m the year before.
Turnover at Ferrovial Construction (UK) rose by 1 per cent year-on-year to £532m compared with £527m the year before.
In accounts filed with Companies House yesterday (31 March), Ferrovial said the rise in turnover was in line with “forecasted growth” and due to “the lifecycle of existing projects”.
Construction contracts comprised the bulk of the firm’s revenue at £490.7m, up from £482.9m in 2023. However, turnover from services slipped from £43.6m to £40.8m.
The firm said the “steady improvement” in 2024 reflected “progress made by management to return the company towards the profit margins expected of it”.
Its profit margin widened to 2.7 per cent, compared with 1 per cent in 2023.
Costs for subcontractors and materials were broadly flat at £368.3m in the latest year.
However, the contractor’s net cash balance at year-end fell to £131m, compared with £189m the prior year.
Ferrovial said this was partly due to completing the “final phases of loss-making projects”.
Before turning a pre-tax profit in the past two years, Ferrovial Construction (UK) suffered a £30m loss due to its Silvertown Tunnel project.
Work on the tunnel has been completed and it is due to open on 7 April.
No dividend was paid for the second year in a row and there was no external bank loan debt, the accounts revealed.
The firm reported that its order book at the end of 2024 was nearly £1.4bn, up from £648m in 2023.
Two major contract wins accounted for the jump. One of these was a joint venture with Bam for track infrastructure on the entire 140-mile route of HS2.
The other was a £230m contract with National Grid for a 2.2km-long tunnel as part of an upgrade to electricity infrastructure.
Ferrovial’s average number of staff in 2024 was broadly flat at 563. It employed a monthly average of 566 employees the year before.
Its overall annual wage bill dropped slightly from £55.3m to £54.2m.
Looking ahead, the firm said it remained focused on increasing revenue “sustainably”, improving its operating margin, growing its cash reserves and boosting its order book.
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James Wilmore