Bouygues UK has posted a £32.3m pre-tax loss for the year ended 31 December 2024 ─ a substantial improvement on the £62.1m loss the French-owned company incurred in 2023.
Turnover was 15 per cent higher in 2024 at £375.6m, but the pre-tax loss was put down to various factors, including skills shortages, geopolitics and issues relating to building regulations.
“Although the company’s result improved compared to the previous year, the loss for the year arose as a result of costs related to subcontractor performance, labour availability, ongoing conflicts in the Ukraine and the Middle East, and the continuing impact of post-completion liabilities relating to building safety,” Thibaut Roux, Bouygues UK’s finance director, said in the company’s accounts.
The firm’s French parent funnelled £32m into its UK subsidiary via a cash-for-equity arrangement, leaving a net asset position by the end of 2024 of £29.5m, compared with £26.4m in the previous year. Cash used in operating activities during 2024 totalled £13.4m, which left a cash and cash equivalents position of £221m by year-end, a 17.5 per cent improvement on the previous year’s figure of £188m.
The challenging conditions in the construction industry meant a small number of Bouygues UK’s subcontractors failed during 2024.
However, the company said “actions were implemented to ensure that works were able to continue with cost forecasts being revised accordingly. The company continued supply chain and key supplier monitoring, with regular checks being carried out with supply chain members,” it added.
Bouygues UK also added provisions of £69.3m in its accounts regarding customer warranties, most of which relate to covering possible long-term safety liabilities that can remain in place for decades after a building is completed. The figure brought the company’s total customer warranty provision to £198m by the end of last year.
Looking forward, Roux said: “While the directors expect pressures on reported financial performance to remain during 2025, they believe that the company’s strategy should provide foundations for improved results in future years.
“The directors will continue to monitor the impact of economic conditions and further developments in relation to Building Safety Regulation on the company and take this into account when making future operating decisions.”
The firm’s chair and chief executive Philippe Bernard said Bouygues UK is “moving forward with resilience and confidence, backed by strong cash reserves, no third-party borrowings and the wider Bouygues Group”.
He added: “Our selective approach to bidding is having a positive impact; we have secured new contracts and expanded our order book across key sectors, positioning us well for future growth. We are monitoring global economic conditions and legislative changes to ensure our decisions remain informed and strategic.”
Bouygues UK recently clinched a deal to be the lead contractor for the West Park development at the University of Exeter and, along with the London School of Economics and Political Science and Equitix, submitted plans to transform Bankside House into a 1,944-bed student residence just behind the Tate Modern art gallery in London.
Since the beginning of 2025, Bouygues UK has been led by Philippe Bernard, a 30-year veteran of the French parent company. He replaced Fabienne Viala, who was Bouygues UK’s chief executive for eight years.
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Matthew Davies