Laing O’Rourke restructure cost company £23m

Aaron Morby 1 year ago
Share

Laing O’Rourke spent £23m restructuring its business operations last year in a bid to drive greater productivity.

Chairman Ray O’Rourke spent the cash on a mix of redundancies, advice and refinancing costs, after the average monthly head count rose over the year to March 2016 to 8,572 from around 8,000 the year before.

Over the year the contractor’s average UK staff salary fell from £49,400 to £45,400.

The radical shake-up to turn around the business saw the group split into separate construction and manufacturing divisions with around 200 redundancies.

According to latest accounts published at Companies House for Laing O’Rourke Services, the firm holding employment contracts for the UK workforce, a further £5.1m was paid out for compensation claims under the Construction Workers Compensation Scheme for blacklisted workers.

The accounts also reveal the highest paid director saw his total pay package fall from £1m in 2015 to £635,000.

Details of divisional performance are now emerging as O’Rourke posts results at Companies House for various operating arms of the business.

Ray O’Rourke confirmed last month that the group made an overall £246m loss for the last financial year.

Reports at Companies House also reveal that Laing O’Rourke plc, the company covering activities in Europe and Canada but not Australia, suffered a total pre-tax loss of £267m.

This was made up of a £194m loss from operations and £73m in exceptional costs including restructuring and £43m relating to three first generation Design for Manufacture and Assembly construction contracts in the UK.

These projects were substantially redesigned to demonstrate the benefits of DfMA.

In the report, O’Rourke says that “significant lessons have been learned from these projects, all of which were won in 2013, a particularly aggressive price driven market”.

He said that lessons had now been learned using new construction methods and these circumstances were unlikely to recur on new contracts.

Total Laing O’Rourke plc revenue including joint ventures slipped back to £1.63bn from £1.68bn last time.

Laing O’Rourke plc is a member of Laing O’Rourke Corporation which operates out of Cyprus.

Directors of Laing O’Rourke Corporation said they were confident they can comply with banking covenants imposed following a refinancing of the group last April. In December 2016 a specific margin covenant governing one particular project was adjusted to reflect changes in the expected end of contract forecast.

Latest news

Almacantar chief in Twitter tirade against McAlpine

Mike Hussey says he would not trust contractor to 'deliver a pizza'
3 days ago

Persimmon chiefs hand back £50m after bonuses outcry

Persimmon bosses waive second instalment of bonuses
3 days ago

Colas and Volker to exit huge London highways contract

CVU joint venture and TfL agree to part company early on eight-year framework
3 days ago

Boost your online presence with the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
4 months ago

Lendlease on board for £4bn London Euston district

Arup and Grimshaw will now work on Euston plans
3 days ago

Carillion cracked hospital beams remedial work unfinished

Auditors and pension regulator heavily criticised by MPs
3 days ago

Amey Rail snaps up Carillion rail projects saving 700 jobs

Projects in the East Midlands, London and North West England back on track
4 days ago

Willmott Dixon gets start date for £49m Colston Hall revamp

Work to start in June on major regeneration for Bristol landmark
3 days ago

Carillion bosses dodge pension black hole

Accounts show one pension scheme was in surplus while the rest had an £800m deficit
4 days ago

Morgan Sindall profits soar as margins restored

Fit-out and construction deliver strong profit growth as 2018 set to be bumper year
4 days ago

Centre Point Tower developer claws back £1m from McAlpine

McAlpine counts cost of row over design and build or construction management route for London tower
4 days ago

Betting Spy: England to win the Calcutta Cup

England can cover the handicap in the Six Nations while West Ham have it all to do as usual at Anfield
3 days ago

Sisk vows to complete joint venture jobs after Lagan collapse

Contractor will complete Highways England schemes on its own
5 days ago

Suspended sentence for scaffolder spotted without harness

Court hears how experienced worker chose to ignore safety rules
4 days ago

Construction slave labour ring smashed in East London

Fifty Eastern European workers saved after exploitation on sites
4 days ago

GRAHAM wins £86m Liverpool build to rent tower

Demolition work to start on waterfront site this month
5 days ago

Interserve to close power lines operation axing over 70 jobs

Power transmission firm to be wound down over next few months
5 days ago

Lagan puts construction arms into administration

Up to 200 jobs at risk as construction and building divisions hit by delays and disputes
6 days ago

Barratt looks to new building methods to boost volumes

Completions creep up by 2% as UK's largest house builder looks to use more offsite construction
5 days ago

BAM counts cost of weaker pound

UK business pre-tax profit slip of 7% to £35m due to exchange rate change
5 days ago

Galliford Try clinches £55m Leamington Spa housing project

Partnerships arm will build 375 homes for Waterloo Housing Group
5 days ago

Green light for London Deutsche Bank HQ

Developer Landsec says construction to continue once substructure is complete next March
5 days ago

Highways England calls bids for £326m Area 10

Hunt starts for maintenance and response contractor in north west
6 days ago

Carillion directors ‘contemptuous’ of pension funding

Carillion trustees alerted watchdog twice over pensions shortfall to no avail
6 days ago

Civils to start on £160m Yorkshire shopping centre

Advanced highways and infrastructure work to start this summer
6 days ago

Liverpool advances £700m Festival Park redevelopment

Willmott Dixon to carry out enabling works around Festival Garden dome base
6 days ago

Consultant Dar to build new Holborn HQ

Hunt on for contractor as Currie & Brown owner plans UK expansion
6 days ago

Another 152 Carillion staff axed taking job toll to 1,141

Staff told to pack up as fresh wave of job cuts unveiled today
6 days ago

Mace lands £350m Stevenage town centre revamp

Council picks winning developer for major town centre regeneration
6 days ago

Construction cartel whistleblowers offered £100k for tip-offs

Competition and Markets Authority targets construction in latest crackdown
7 days ago

Contractor services