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More problem contracts overseas sent group profit at Laing O鈥橰ourke tumbling with the firm鈥檚 Australia business racking up a near 拢76m bill on one scheme which has seen it fork out an eye-watering 拢17m in legal bills alone.

The company also confirmed in its latest report and accounts that cumulative losses on a PFI hospital scheme in Canada had gone up again 鈥� to more than 拢219m 鈥� meaning that between them the two jobs, including lawyers鈥� fees, have cost the company more than 拢300m.

The job in Australia is not named but the firm said it related to a contract terminated during its 2017 financial year.

Previously, O鈥橰ourke has referenced a pay dispute with its Japanese partner on a huge gas station job in northern Australia. It was building four cryogenic tanks at the LNG Tanks Project in Darwin for lead construction partner Kawasaki Heavy Industries before its contract was ended in 2017.

It said the 拢75.7m exceptional item was made up of legal costs of 拢6.1m 鈥� meaning the firm has racked up a 拢17m legal bill on the dispute in the past four years 鈥� and a 拢69.6m 鈥渁djustment to the value of a contract asset in respect of a contract terminated during the 2017 financial year鈥�.

Revenue from its Australia business in the year to March 2022 was up 27% to 拢1.1bn but the exceptionals helped send the division to a 拢6.2m pre-tax loss from a 拢27m profit last time.

> Also read: Executive brought in to replace Ray O鈥橰ourke goes after less than a year

Income at its Europe hub, which includes the UK, Canada and the Middle East, was up 13% to 拢1.8bn although pre-tax profit slipped 3.5% to 拢56.3m.

Group turnover was at its highest level for four years at 拢2.9bn but the yo-yo performance of its profit over the same period 鈥� which climbed to 拢45.5m in 2020 鈥� continued with Laing O鈥橰ourke posting a pre-tax profit of just 拢2.7m giving it a pre-tax margin of less than 0.5%.

It said that its group order book at the year-end was up 14% to 拢9bn with 拢6.1bn of that coming from Europe, although the figure was flat on last year鈥檚 number. But upcoming workloads at Australia were up 81% to 拢2.9bn.

The firm said the average number of employees every month was close to 10,300, from the near 9,900 employed in 2021.

It also picked up a 拢4.8m R&D tax credit, while it made a 拢5.7m profit on the sale of its share in two joint ventures with the bulk coming from the disposal of its stake in a scheme to build a justice centre in Australia鈥檚 capital Canberra.

In the accounts, the business said a 拢35m revolving credit facility with sole lender HSBC was extended by six months to April 2024 while a 拢13m property loan was also extended to the same date.

Last year Ray O鈥橰ourke, the firm鈥檚 chief executive, and younger brother Des, its group deputy chairman, agreed to allow 拢58.3m of loans to be turned into equity 鈥� although the 拢13m figure the pair handed the business through the property loan was retained.