Tue. Apr 23rd, 2019

Ferrovial loses 448 million euros due to the adjustment in its business in the United Kingdom | Economy

Ferrovial loses 448 million euros due to the adjustment in its business in the United Kingdom | Economy



Ferrovial recorded a loss of 448 million euros in 2018, compared to a profit of 454 million euros a year earlier, due to the adjustment made in the services business in the United Kingdom due to the uncertainties generated by Brexit, according to the company. .

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The group presided by Rafael del Pino has provisioned 774 million for the deterioration caused by these uncertainties in its Services division, in order to clean it up and sell it.

The United Kingdom is the first market of the construction and concessions group, especially in the Services branch, which last year generated 39% of this division's revenues.

This adjustment in the British business of Ferrovial Services leads the company to re-enter 'red numbers' after which it has already posted in the first quarter of 2018.

In that case, it was also due to the United Kingdom, to the provision made before the open dispute with the Birmingham City Council for the interpretation of what is its largest maintenance contract in the country.

The new provision is made to clean up the services division and put it on sale within the framework of the strategic review that Ferrovial has carried out to focus its activity on the transport infrastructure business, according to Rafael del Pino during the presentation of results.

Ferrovial could not compensate the adjustment with the 623 million euros that Ferrovial received as dividends for the holdings it has in its 'crown jewels', London Heathrow Airport, the 407 ETR toll road in Toronto (Canada) and three regional aerodromes British.

The company assures that in the case of excluding the annotation of said provision, its result would be 460 million and would grow 8.6%

At the operational level, once the division of services was deconsolidated, the group increased its turnover by 11.3% to 5,737 million euros, driven by international business, which contributed 77% of the total income.

By business areas, and in the absence of the services business, the traditional construction activity was once again Ferrovial's main source of revenue, when it invoiced 5,193 million last year, up 12.2%, driven by the start of " big projects "in the United States.

At the end of last year, the group had a portfolio of works to be undertaken worth 10,965 million euros, 89% also international.

The management of the toll roads in concession contributed 471 million, 2.3% more, and airport management, another 14 million.

The service business

The branch of services on which it has hung the poster of 'se vende' billed 6,785 million euros last year, 4% less for the conclusion of contracts and the policy of selective choice of contracts in the United Kingdom. At the end of the year it had a portfolio of contracts worth 19,411 million distributed both in that market and in Spain and Australia.

Regarding the dispute with the Birmingham City Council regarding the maintenance contract for the city's infrastructures, Ferrovial indicates in its results report that in September of last year the financial entities took over the company through which the contract is held and appointed administrators of it.

However, it indicates that its subsidiary in the Amey country continues to provide the service "as dictated in the contract while negotiations continue with the Consistory to redirect it".

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