Laing O’Rourke puts Australian arm up for sale

Grant Prior 1 year ago
Share

Laing O’Rourke is putting its Australian business up for sale following a strategic review of the group.

Laing O'Rourke

The move follows a series of takeover approaches for parts of the company.

Chairman Ray O’Rourke also confirmed a “streamlining” of the UK and European operations.

The move follows a testing time at the firm which saw the UK and European division rack-up a £58m pre-tax loss in the year to March 2015.

It also conceded that 2016 would be a “challenging” year and chief executive Anna Stewart stood down for health reasons in December.

A statement signed-off by Ray O’Rourke said: “During the 4th Quarter of 2015 the Laing O’Rourke Group Executive carried out a strategic review of its business portfolio, including options as to the allocation of capital over the remainder of this decade.

“This review was partially triggered following unsolicited approaches from a number of parties expressing interest in acquiring parts of our business, including our very successful Australian business.

“This is reflective of both the strength and attractiveness of this element of the Group which, having performed well in recent years, is now strongly positioned in the emerging infrastructure market with blue-chip clients, a solid pipeline, a talented leadership team and great people.

“Accordingly a formal sale process will now commence, led by HSBC Investment Bank and supported by our other advisors.

“Another key conclusion of the review was that the European business and the UK in particular was very well placed for strong growth potential, which will be further fuelled by the Government’s renewed focus on Infrastructure and new Housing.

“If we are to seize these growth opportunities, further UK investments will be required especially in areas that promote our competitiveness and the attractiveness of our offering to clients.

“Consequently the Group and the European business will focus on streamlining its organisation and align its structures, processes and overheads to capture the full operational efficiencies and cost benefits which will flow from the current and future Investments in Off-site Build and advanced Digital Engineering.

“This is an area in which the Group intends to maintain its leadership position, maximise its competitiveness and continue to provide innovative solutions to its clients.”

Latest news

London Northern Line tunnelling to start in March

Design changes to station box delays tunnel start by nearly nine months
12 hours ago

Lakehouse racks-up £31.7m loss

Chairman confident of better year ahead after maintenance woes blow hole in accounts
3 hours ago

Three left in race for £1bn Tottenham scheme

Barratt, Lendlease and Bouygues vie for North London High Road West scheme
4 hours ago

Barratt suspends more staff in wake of contracts probe

Three more London division staff reported to be suspended
18 hours ago

Vast Barking shopping mall rebuild approved

Redevelopment of Vicarage Field Shopping Centre site gains outline planning
4 hours ago

Crest Nicholson notches up £1bn record sales

Chief warns European labour needed to maintain new housing supply
3 hours ago

Trade federations under spotlight in CITB survival vote

Doubts cast over thoroughness of trade body consultation as industry set to vote on CITB's future
4 hours ago

D&D wins deal for 17 towers at Welsh superstore

Design and Display Strucures lands £1m+ package from Kier at Trago Mills
12 hours ago

Vinci wins £16m University of Cambridge office

Maurice Wilkes office building will be constructed at the St John’s Innovation Park
3 hours ago

Opinion: Time to call off the QS cash vampires

Industry can do without new breed of aggressive quantity surveyors
1 day ago

Prime Minister unveils £556m Northern Powerhouse boost

Funding boost for Goole intermodal terminal and Blackpool Winter Gardens extension
1 day ago

22 Bishopsgate to get fastest lifts in Europe

Otis wins contracts for 30km per hour lifts
1 day ago

B&K wins Altrincham hospital redevelopment

Work to start on South Trafford Health and Wellbeing Centre in March
1 day ago

Historic builder wins £15m Brighton Royal Pavilion revamp

First phase of the restoration programme involves the Corn Exchange building
1 day ago

Planning decision on £30m Cumbria campus next month

Work could start next month on Whitehaven school complex
1 day ago

JS Wright lands record M&E package

Specialist to start work on £5m north London deal in April
1 day ago

Scaffolding giant Palmers back under British ownership

New owner Colin Butt seals post-Brexit deal with German firm Xervon
4 days ago

Subbies under attack from new breed of aggressive QS

Specialists at war with main contractor quantity surveyors
4 days ago

Asbestos analyst fakes air testing certificates

Court hears how safety checks were not carried out properly on Manchester site
4 days ago

Ealing set for first major office scheme in a decade

Demolition work to start in April paving way for £50m building project
4 days ago

Subcontract rating wins Buckingham £37m waterpark

Coventry City Council scores package contractors in picking winning main contract bid
5 days ago

Crossrail in chaos as M&E work ripped out

100 electricians let go at Paddington as installation work grinds to a halt
5 days ago

Barratt finance boss exits after 15 months

Neil Cooper is leaving by mutual consent with immediate effect
4 days ago

Trade body questions future of CITB

Skills body in the firing line as it gears-up for crucial levy vote
5 days ago

Skills cards for fringe trades to be phased out

230,000 Construction Related Occupation cards to become obsolete
5 days ago

Mott MacDonald names new managing director

Mike Haigh rises from graduate to group MD in 35 years at Motts
4 days ago

Betting Spy: Rampant Spurs a big price at Man City

A Tottenham and Everton double pays a healthy looking 7/1
5 days ago

Pod specialist makes appeal to creditors

Modular contractor Aartoft could be heading for CVA
5 days ago

Plans lodged for 19-storey Coventry student block

Developer Crosslane submits 583-bed student accommodation scheme
5 days ago

Morgan Sindall wins Liverpool Knowledge Quarter work

Liverpool City Council awards two contracts worth £47m on Paddington Village scheme
6 days ago

Contractor services