Equans Regeneration has significantly reduced its losses amidst ongoing pressures in the new-build market.
- The company, acquired by Bouygues in 2022, reported a pre-tax loss of £38.9m for 2023, down from £135.7m in 2022.
- Equans attributes improvement to workforce resilience despite challenges faced from withdrawing from parts of the UK.
- The firm’s turnover decreased slightly to £907.7m, with cash reserves plummeting to £100,000.
- Equans is shifting focus towards student-accommodation and strategic refurbishment projects for better margins.
Equans Regeneration has made noteworthy progress in reducing its financial losses by nearly 70 per cent despite facing considerable pressures in the new-build market. The company, which came under the ownership of Bouygues in October 2022, has posted a pre-tax loss of £38.9 million for the year ending 31 December 2023, a substantial improvement from the previous year’s loss of £135.7 million. This performance has been attributed to the company’s ‘ongoing resilience and strength of our workforce’, as stated by Equans.
Nevertheless, Equans acknowledged that its financial outcomes were impacted by the strategic decision to withdraw from certain regions within the UK last year, coupled with the persistent difficulties in the new-build market. These factors collectively contributed to a £59.1 million loss, as reflected in the company’s accounts. Furthermore, the turnover for 2023 witnessed a slight decline to £907.7 million compared to £926 million previously, with the company’s cash reserves dwindling to £100,000 from £869,000 the prior year.
In response to these challenges, Equans has pursued a strategic shift in the type of projects it undertakes. By the end of 2025, the company aims to exit the new-build market to reposition its business focus exclusively on the student-accommodation sector. The firm has become more selective regarding traditional competitively tendered design-and-build projects, actively targeting refurbishment and sustainability initiatives that offer improved margins and greater control over costs and operations.
Further demonstrating its strategic realignment, Equans has established extended partnerships with Birmingham and Manchester city councils to secure future revenues of £160 million and £78 million respectively. These contracts encompass delivering responsive and planned maintenance as well as refurbishment services to over 50,000 council-owned homes across the two municipalities until at least 2026/27. Additionally, Equans has committed to a £100 million fire safety project for housing association Optivo, slated for completion in 2028.
Looking ahead, Equans remains optimistic about its growth trajectory. The company conveyed confidence in its ongoing development and performance aligning with the directors’ expectations, supported by a robust pipeline and successful operational activities of the present schemes.
Equans has adeptly navigated financial challenges while repositioning towards more profitable and sustainable business ventures.
