Last updated February 2nd 2021
Bouygues UK
Bouygues UK is a major subsidiary of the giant French construction, media and telecoms conglomerate Bouygues with a turnover of around £400 million
Bouygues UK’s core business involves construction, development and regneration projects across the UK. The company is part of Bouygues Construction – which employs around over 58,000 people and has a turnover of 13.35 billion euros. Key sectors where it works in include residential, education, healthcare, student accommodation, offices and commercial, mixed use regeneration, hotels and healthcare and Bouygues UK employs around 1230 people.
Bouygues UK was ranked 17th in Glenigan’s Contractors League Table in the year to September 2020. The group won 17 major projects with a combined value of £581 million.
Acquisitions in recent years have included Thomas Vale Group, a Midlands construction business, Warings, the Leadbitter Group (including Denne) and ETDE a facilities management business. It also operates a development business Linkcity. In summer 2018, Rob Bradley was appointed as the company’s new chief executive officer, following the resignation of Lionel Christolomme.
In early 2021, John Boughton, former deputy managing director at Willmott Dixon in Wales and the South West, joined Bouygues UK as regional managing director for Wales and the South West; a key area for the group.
Bouygue UK’s latest annual report, published in autumn 2020, pointed to improving results reflecting the company’s increased selectivity in taking on projects and action to manage margins, streamline the business and save on overheads.
Today the group is seeking to strengthen its climate strategy, offering climents solutions promoting the energy performance of buildings, neighbourhoods, and towns and cities and taking action on design, purchasing and the execution and operation of buildings.
Financials
To view the financials for Bouygues (U.K.) Ltd, visit Companies House and use Company ID 03460378.
The latest results from the redevelopment and construction business reflect an improved performance at Bouygues UK. Turnover fell to £399.5 million in the year to end-December 2019, from £451.9 million previously and the company reported a profit before tax of £2.64 million, compared to a loss of £528,000 previously. However, the balance sheet showed cash & equivalents of £198.9 million, up from £152.75 million.
Construction
The firm’s construction division provides an integrated programme, from funding to facilities management, across a wide range of sectors and operates across four UK regions, London, Western, Central and South East. In the private sector, the firm works across the commercial, leisure and luxury residential markets and in the public sector (including PPPs), mainly in healthcare and education.
In the health sector in early 2021, Bouygues UK was accepted onto the NHS Shared Business Services framework; a 10.5 billion initiative to improve procurement in the public sector and whill give the company access to a potential £35m worth of projects to maximise contract uptake and compliance.
In summer 2020, the Cardiff Innovation Campus which Bouygues UK is delivering for Cardiff University was topped out. The new state-of-the-art campus was designed by global architects HOK and will be home to the Institute for Compound Semiconductors and Cardiff Catalysis Institute.
Other key recent projects where Bouygues UK has worked include a new £300m home for the University of Cambridge’s Cavendish Laboratory, a purpose-built centre for physics research of around 354,000 sq ft, with an independent 50,000 sq ft shared facilities hub.Bouygues UK also completed the construction of Cambridge’s biggest office complex: a new hq for Cambridge Assessment, known as The Triangle over some 360,000 sq ft.
Meanwhile, the UCLH proton beam therapy centre in London delivered by Bouygues UK was shortlisted in the public sector design stage category of the BREEAM Awards 2019.
In the civils sector, Bouygues Travaux Publics has a €1.7 billion contract (Bouygues’s share) in a jv with Laing O’ Rourke to construct buildings that will house the two EPR nuclear reactors. Bouygues Energies & Services has the design and build contract for the backup plant at Hinkley Point C.
In spring 2020, Bouygues Travaux Publics confirmed that its Align joint venture (with Sir Robert McAlpine and VolkerFitzpatrck) will construction the C1 stage of HS2, a 22-km stretch north-west of London that includes the 3.4-kilometre Colne Valley Viaduct and the two 15.75-km Chilterns Tunnels. It will be worth €1.8 billion (Bouygues Travaux Publics’ share: €1.1 billion) with more than 1,500 people on site at the peak and the contract will run for 66 months.
Development
Bouygues UK’s development arm, Linkcity, has a track record of developing major urban regeneration schemes. It works across the public and private sectors, particularly on mixed-use developments, regeneration schemes, residential and student accommodation.
In summer 2020, Linkcity, signed agreements with multiple partners for the £240m third phase of Hallsville Quarter, a major regeneration scheme with the London Borough of Newham at Canning Town. It involves 278 private rental homes, forward-funded by Grainger across two blocks; and 143 shared ownership with 199 affordable homes. It also involves around 88,000 sq ft of retail and leisure space which Linkcity will retain.
Housing
Operating across three regions, Central, London and the South East, the group’s housing unit focuses on residential and mixed tenure developments, care and extra care facilities and student accommodation. Schemes range from large and complex mixed-use city centre developments to small rural housing projects.
In early 2021, Bouygues UK was chosen by the London Borough of Tower Hamlets to deliver an £8.4 contract at Locksley D involving 17 affordable housing units in what will be the fourth phase of a £37.1m project to deliver 94 council homes.
Glenigan Data
Data from Glenigan suggests Bouygues UK is set to make a busy start to 2021. They show that the company is the main contractor on a £60 millioin scheme of 200 residential units for Westminster Council at the Ebury Bridge Estate, where work is due to start in early 2021 and continue for 24 months (Project ID: 19336403). In the education sector, Glenigan data also shows that Bouygues UK is the main contractor on a £94 million scheme of student accomodation and commercial units for the University of Bristol, where work is due to start in early 2021 and continue for 43 months. On the civils side, Bouygues Travaux Publics is one of the civils contractors on the Align JV on the £965 million Lot C1, the tunnels and viaduct for HS2 Chiltern & Colne Valley where work is set to start in earnest in spring 2021 and continue for 60 months (Project ID: 17259576).
Conclusion: Winning work through broad range of skills particularly on mixed use schemes in London
Bouygues UK is not alone in facing project delays linked to Brexit and Covid and a need to be more selective in recent years. Whilst turnover is down, the company has returned to the black and it seems to be maintaining a healthy order book, helped by its development arm Linkcity and its appetite for major partnership schemes. The company is developing strong positions in the education and student accomodation sector and should be able to continue to use its broad range of skills and sector specialisms – and by working with other sister firms within the wider Bouygues group – to win more work on mixed use schemes. The group is also taking advantage of the growing UK infrastructure market, highlighted by its significant workload at Hinkley Point C and on HS2.
Winning work with Bouygues UK
Bouygues UK aims to create lasting relationships with UK sub-contractors, consultants and suppliers who provide best-in-class and best value products and services. Reinforcing the supply chain is seen as a way to enhance the services the firm offers and Bouygues UK holds ‘meet the buyer’ business events in the regions where it works.
Companies interested in working with the group are invited to submit a pre-qualification form, with criteria developed through ISO 9001, available on the group’s website at www.bouygues-uk.com
It also invites would-be suppliers to have an informal chat before completing the form by contacting it at purchasing@bouygues-uk.com
Tel: 0207 401 0020
Key contacts:
Andrew Rainbow, Head of Procurement and Supply Chain at Bouygues UK.
Email andrew.rainbow@bouygues-uk.com
Tel 020 7401 0020
Amelle Mestari, Director Of Procurement, Bouygues Energies & Services (UK)
Email amelle.mestari@bouygues-uk.com
Tel 020 7401 0020