Bouygues UK has posted a \u00a342m pre-tax loss after almost doubling its building-safety provisions.<\/p>\n
The contractor\u2019s accounts for the year to 31 December 2022 showed it slumped from an \u00a3835,000 pre-tax profit in 2021. Its turnover also slid, to \u00a3382m from \u00a3484m in the year before.<\/p>\n
The French-owned company, which delivers schools, housing, student accommodation and healthcare facilities, increased its \u201ccustomer warranty provisions\u201d \u2013 the money set aside for potential post-completion liabilities in the year \u2013 to \u00a362m from \u00a331.5m.<\/p>\n
In a statement released with the accounts, chief financial officer Jean Luc Midena said: \u201cThe loss for the year arose as a result of 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.\u201d<\/p>\n
No specific schemes were named in the accounts. A raft of new safety measures have come into force since the start of 2022, including the extension of liability for defects<\/a> from six to 30 years under the Building Safety Act.<\/p>\n Midena also blamed the failure of a \u201csmall number of subcontractors working for the company\u201d for its issues and said the firm had to revise cost forecasts due to the potential of other failures.<\/p>\n