The construction and project management division of Aussie developer Lend Lease saw profits and revenues fall in all regions except Asia Pacific in the year to June.
In Europe, pre-tax profits plummeted by a fifth to £25.5m on sales down over a third at £1.2bn.
The firm is presently operating on a margin of 2.3% in Europe and the Middle East.
Bovis Lend Lease annual results
- Turnover £4,875m (-31%);
- pre-tax profit £75.6m, (-44%)
- Europe T/O £1,238m (-36%); Profit £25.5m (-21%)
- US T/O £1,672m (-51%); Profit -£40.6m (n/a)
- Asia Pacific T/O £1,963m (+14%); Profit £90.7m (+18%)
Lend Lease Group CEO Steve McCann said the UK market was improving, but warned in the medium term the contribution to Bovis would remain weak.
On overall construction activity he said: “Construction markets offshore remain difficult and construction volumes in Australia are likely to decline as government stimulus spending softens.
“However, it is very clear that the group is well placed for growth and we expect our strong project pipeline to deliver over the medium term,” Mr McCann said.