Lend Lease construction profits dive in Europe

Aaron Morby 13 years ago
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Pre-tax construction profits at the UK and European business, formerly called Bovis, fell by almost half to £13.7m from £25.4m last year.

Developer Lend Lease said its construction division had suffered from challenging conditions across the UK and Europe with revenue down a third at £812m in the year to 30 June.

This is the first time  European construction revenue has dropped below £1bn in several years and comes on the back of a another big revenue fell of a third in the previous year.

Developer Lend Lease dropped the Bovis name in February amid a big restructuring of the European business led by Dan Labbad, chief executive officer of the Europe, Middle East and Africa operating division.

Lead Lease said key contributions to profit came from the Athletes’ Village project, the new BBC broadcasting centre, UK Ministry of Defence projects and the BP Global Alliance project across Europe.

New work secured  increased by £200m to just over £900m and included the order for the Scottish National Arena in Glasgow, Bulford Housing for the UK Ministry of Defence and Manchester Creative & Media Academy.

The sales of PFI interests and property development helped the European division as a whole to return a profit of £70m, down just 7% on last year.

Meanwhile last year’s heavy losses at the US construction division are coming under control, down from a loss of £39m to £4.5m in the red this year. But  revenue was also hammered, down by nearly half  to £832m.

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