VINCI - 2005 annual report

CONSTRUCTION / ACTIVITY
Outperforming
the market in all sectors
With revenue up 13.5% to over €9 billion, VINCI Construction achieved excellent
performance in virtually all the sectors in which it operates. Margins kept
pace with increasing volumes. The ongoing policy of selective order-taking
and production method optimisation resulted in strong growth in operating
profi t from ordinary activities (+43%) and a further improvement in oper ating
margin, which reached a record 4.9% of revenue.
Revenue
+13.5 %
Operating profi t
from ordinary activities
+43 %
86
VINCI 2005 ANNUAL REPORT
France
Business activity at GTM Construction increased by 8.3% in
2005 and at Sogea Construction by 17%, at a pace that far
outstripped the market (3.3% (1) ). Building on its strong local roots and its
leadership, VINCI Construction posted particularly strong growth in the regions
where the economy and the population are growing fastest, especially south–
eastern France and the Paris region. Revenue growth was an even more impressive
+14% when the business activity of VINCI Construction, Freyssinet and DEME
in France are taken into account; when the overseas subsidiaries are also included,
revenue grew by 15%.
VINCI Construction generates 43% of its
International revenue outside France. Activity increased
across virtually all the Group’s local markets in Europe, Africa and the former
French overseas territories, as well as in the world major project, specialised
civil engineering and dredging markets.
IN THE UNITED KINGDOM, business activity at VINCI PLC rose 25%
(to €938 million euros), notably as a result of contracts awarded by the Jarvis
company in the education sector (with a value of €140 million).
IN GERMANY, business activity at SKE was concentrated in public-private
partnerships and the buoyant facilities management market, where the
com pany continued to expand by renewing its multi-year contracts with the
United States Armed Forces, the longstanding customer for which it maintains
bases in Germany. In addition, VINCI Bautec, specialised in architectural fi tting
and fi nishing, maintained its business activity under diffi cult market conditions.
1. – Source: DAEI, French Ministry for Transport, Infrastructure, Tourism and the Sea.