VINCI PLC VINCI Construction UK Limited Astral House Imperial Way Watford Hertfordshire, WD24 4WW T: 01923 233433 VINCI PLC Annual Report 2008
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Head Office VINCI PLC VINCI Construction UK Limited Astral House Imperial Way Watford Hertfordshire, WD24 4WW T: 01923 233433 VINCI PLC Annual Report 2008 VINCI PLC is part of VINCI, the world’s leading concessions and construction group. www.vinci.plc.uk VINCI PLC Annual Report 2008 17382 VinciPLC R&A 2008- Cover 1 30/06/2009 09:00 Contents Cover image: Warwick Digital Laboratory, Warwickshire. This page: Newfi eld and Talbot School, Sheffi eld. 17382 VinciPLC R&A 2008- Cover 2 30/06/2009 09:00 “...providesOur mission VINCI is PLCto be with the preferreda national construction, platform to performfacilities all facets and associated of construction services and partner facilities for our clients and to be the benchmark against which services from the smallest to the largest project.” our competitors are measured. Report Operating and Financial Review Company Information 2 Chief Executive’s Report 4 During 2008, the UK economy enteredCorporate into Responsibility more diffi cult circumstances with a noticeable 26 slow down in construction activity,Enhanced particularly Business in Reviewthe private sector where we had fewer 30 opportunities. Turnover in certain sectorsDirectors’ of Report the Group fell by comparison with 2007, with a 32 Statement of Directors’ Responsibilities 34 reduction in output in Norwest Holst Building Division and John Jones. In regional building, Independent Auditors’ Report 36 turnover increased as a result of the impact of the acquisition of Stradform and Gordon Durham. Accounts The most important event in the year, however,Consolidated was Incomethe acquisition Statement Acquisitions and Disposals 38 in September of Taylor Woodrow ConstructionStatements Limited. of Recognised This was Incomea and Expense 39 transformational step in the developmentConsolidated of our construction Balance business Sheet At the beginning of 2008, VINCI PLC acquired40 two regional contractors: in the UK market. Company Balance Sheet 41 Cash Flow Statements Cardiff -based Stradform Limited which also42 has offi ces in Swansea and Taylor Woodrow has a long and prestigiousAccounting record as Policies one of the UK’s Bristol. The Company undertakes a variety44 of contracts for a diverse foremost construction companies, with particular expertise in managing portfolio of clients across Wales and the Southwest of England. Notes to the Accounts 51 large and complex building and civil engineering projects. It is also well established in the facilities managementPrincipal market, bothSubsidiary in the UndertakingsUK and Based in South Tyneside, Gordon Durham is84 a well established regional Europe. The combination of Taylor Woodrow’s leading market position contractor undertaking contracts throughout the Northeast of England. in key growth sectors of the industry, such as transport infrastructure, The Company works principally for the public sector in the areas of social with the regionalised building and civil engineering network of Norwest housing, education, health and leisure as well as for national and local Holst, provides VINCI PLC with a national platform to perform all facets developers. of construction and facilities services from the smallest to the largest project. In September 2008, VINCI PLC acquired Taylor Woodrow, one of the UK’s leading companies in construction and facilities management (FM). The turnover of the Group increased to over £1 billion during the year, with The acquisition of Taylor Woodrow is a signifi cant step in the strategy Taylor Woodrow contributing £200 million in the period from September of developing the Company’s presence in the rail, energy infrastructure to December. Profi t before tax fell to £16 million compared to £40 million and FM markets in the UK and expands its regional building activities in in 2007, but that year’s results benefi ted from approximately £22 million health, education, retail and airports as well as increasing its portfolio of of one-off gains from asset sales and discontinued businesses. The PFI and PPP activities. overall cash position of the Group declined to £137 million from £152 million in 2007 as a result of the cost of acquisitions. The order book at In December SIMPLEX was sold to Soletanche Bachy Limited. the end of 2008 increased to £1.4 billion. Page 1 17382 VinciPLC R&A 2008- Text Sec1:1 17/06/2009 13:32 Company Information Directors J O M Stanion (Chairman & Chief Executive) Head Office D W Bowler VINCI PLC A M Comba VINCI Construction UK Limited D A L Joyce R M R Francioli (Non-executive) Astral House X M P Huillard (Non-executive) Imperial Way F Ravery (Non-executive) Watford Hertfordshire, WD24 4WW Secretary R E Watts T: 01923 233433 Registered Offi ce Astral House Building Division Imperial Way VINCI Construction UK Limited Watford 41-43 Clarendon Road Hertfordshire Watford WD24 4WW Hertfordshire, WD17 1TR T: 01923 478400 Web Address www.vinci.plc.uk Regional offices in: Birmingham, Bristol, Darlington, Derby, Leeds, Reigate, Warrington, Winchester Registered Number 737204 Civil Engineering Division Auditors KPMG LLP VINCI Construction UK Limited Altius House Astral House One North Fourth Street Imperial Way Central Milton Keynes Watford MK9 1NE Hertfordshire, WD24 4WW T: 01923 233433 Bankers National Westminster Bank Plc Regional offices in: Birmingham, P O Box 2DG 208 Piccadilly Bristol, Cardiff, Derby and Widnes London W1A 2DG Page 2 17382 VinciPLC R&A 2008- Text Sec1:2 17/06/2009 13:32 Air Division Crispin & Borst Building and Technology Division Crispin & Borst Other Companies World Business Centre 3 Maintenance South Technology Centre South East Region Conren Limited 1208 Newall Road Stuart House Stanbridge Road Knightrider House Redwither Road Heathrow Airport Manor Way Leighton Buzzard Knightrider Street Wrexham Industrial Estate Middlesex, TW6 2TA Rainham, Essex Bedfordshire, LU7 4QH Maidstone Wrexham, LL13 9RD T: 0208 897 1103 RM13 8RH T: 01525 859000 Kent, ME15 6LU T: 01978 661991 T: 01708 634650 T: 01622 686876 Regional office in Chesterfield Facilities Division Norwest Holst Soil Head Office Crispin & Borst Building and Engineering Gordon Durham John Jones VINCI Facilities Maintenance North Parkside Lane Moor Lane (Excavation) Limited 41-43 Clarendon Road Norwest House Dewsbury Road East Boldon Southwood House Watford Ditton Road Leeds, LS11 5SX Tyne and Wear, NE36 0AG Greenwood Office Park Hertfordshire, WD17 1TR Widnes T: 0113 271 1111 T: 0191 536 7207 Goodiers Drive T: 01923 478400 Cheshire, WA8 0PG Regional offices in: Watford, Salford, M5 4QH T: 0151 422 3800 Gloucester and Livingston Stradform T: 0161 772 1420 Taylor Woodrow Fountain House Facilities Management TCL Granby Regional Contractors Fountain Lane VINCI Investments Limited 2 Cranberry Drive Kingswood House Crispin & Borst St. Mellons Astral House Denton 31-39 Miles Road London Region Cardiff, CF3 0FB Imperial Way Manchester, M34 3UL Mitcham 1 White Oak Square T: 02920 777766 Watford T: 0161 320 2900 Surrey, CR4 3DA Pioneer Way Regional office in Bristol Hertfordshire, WD24 4WW T: 020 8646 1122 Swanley T: 01923 233433 Taylor Woodrow Kent, BR8 7AG Weaver Facilities Management, PEL Interiors T: 01322 661600 86-92 Worcester Road VINCI Education Limited Taylor Woodrow 6230 Bishops Court Bromsgrove Astral House Partnership Services, Birmingham Business Park Crispin & Borst Worcestershire, B61 7AQ Imperial Way Rosser & Russell Birmingham, B37 7YB Thames Valley Region T: 01527 575 588 Watford 41-43 Clarendon Road T: 0121 788 7000 Apollo House Hertfordshire, WD24 4WW Watford Mercury Park T: 01923 233433 Hertfordshire, WD17 1TR 361-373 City Road Wooburn Green T: 01923 478400 London, EC1V 4LR High Wycombe T: 020 7843 9200 Buckinghamshire, HP10 0HH T: 01628 554955 Page 3 17382 VinciPLC R&A 2008- Text Sec1:3 17/06/2009 13:32 ReportChief Executive’s Executive’s “...our aim is to provide VINCI PLC with a national platform from which to perform all facets of construction and facilities services from the smallest to the largest project.” John Stanion Chairman and Chief Executive 2008 £1.02b 2007 £774m 2006 £632m 2005 £639m 2004 £509m 0100 200 300400 500600 700 800 900 1000 Group Turnover Page 4 17382 VinciPLC R&A 2008- Text Sec1:4 17/06/2009 13:32 The“...provides performance of VINCI the business PLC withwill be a further national enhanced platform by the Technologyto Centre,perform a capability all facets that is ofunique construction to the Company, and whichfacilities is dedicated to providing innovative and value adding solutions through a combination of researchservices and development, from the smallest testing and to consultancy the largest skills. project.” During 2008, the UK economy entered into more diffi cult circumstances Cardiff -based Stradform Limited also has offi ces in Swansea and Bristol. with a noticeable slow down in construction activity, particularly The Company undertakes a variety of contracts for a diverse portfolio in the private sector where we had fewer opportunities. Turnover in of clients across Wales and the South West of England. certain sectors of the Group fell by comparison with 2007. In regional contracting, turnover increased as a result of the impact of the Based in South Tyneside, Gordon Durham is a well established regional acquisition of Stradform and Gordon Durham. contractor undertaking contracts throughout the North East of England. The Company works principally for the public sector in the The most important event in the year, however, was the acquisition areas of social housing, education, health and leisure as well as for in September of Taylor Woodrow. This was a transformational step in national and local developers. the development of our construction and facilities business in the UK market. In September 2008, VINCI PLC acquired Taylor Woodrow, one of the UK’s leading companies in construction and facilities management Taylor Woodrow has a long and prestigious record as one of the (FM). The acquisition of Taylor Woodrow is a signifi cant step in the UK’s foremost construction companies, with particular expertise in strategy of developing the Company’s presence in the rail, energy managing large and complex building and civil engineering projects.