Aarsleff has reported that its results in the UK were lower than expected due to a slowdown in the market and a number of low-profit contracts.
Internationally, Aarsleff’s ground engineering business reported a 2.5% increase in revenue for the year to DKK1.7bn (£207M) with a profit margin of 3.2%.
However, the company said in its annual report that market conditions and contracts impacts negatively affected the profit for the UK division by around DKK10M (£1.2M).
The company said: “In the UK, results were significantly below expectations due to a slowdown in the market in the last part of the financial year. Also, low-profit contracts were entered into to secure capacity utilisation at the pile factory.”
In a statement to shareholders, Aarsleff said that it expected the slowdown in the UK market to remain unchanged in 2017/18 financial year and said it was making capacity adjustments accordingly.