Firm had been told legal action was 鈥榲irtually certain of success鈥�
Profit at Lendlease last year was hit by the cost of a failed dispute on a hospital scheme it had previously believed it would win.
The firm鈥檚 European construction arm said it had booked the one-off cost in its accounts for the year to June 2023 on a court judgement made in November last year over a legal wrangle with a consultant on its work at the hospital in Leeds.
The scheme is not named but last year Lendlease was told it could not sue Aecom for fire safety defects on a cancer unit at St James鈥檚 Hospital in the city because it did not begin legal action in time before a liability period elapsed.
The work at the centre of the dispute was completed in late 2007 under a PFI deal.
In its accounts, signed off last month, Lendlease admitted that 鈥渂ased on external advice received, management had previously considered this recovery virtually certain of success鈥�. The firm had been hoping to recoup 拢3m.
It added that it had booked the cost in its 2023 numbers which meant that pre-tax profit slip a third to 拢11.9m on turnover down 8% to 拢509m.
Lendlease said the fall in income was down to bidding less schemes over the covid-19 period but added that at its year-end it had 拢2.3bn of work at the preferred bidder stage. 鈥淭his enviable pipeline of works provides a solid foundation for future growth in line with our strategic targets,鈥� it added.
Net cash at the year-end was up 23% to 拢94m.
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