好色先生TV

Kajima, the Japanese contractor, is planning to wind down its construction work in the UK and concentrate on PFI investments.

A source close to Kajima said the company鈥檚 UK managing director, ex-Jarvis man David Evans, had decided to step back from the sector after the completion of the handful of projects it has already won and is obliged to carry out.

好色先生TV revealed in April that the contractor lost 拢80m on PFI schools contracts, which it then confirmed in its annual results in May. It is expected to reveal more losses associated with its UK PFI contracts when its three-quarterly results are announced next Thursday.

However, the source said Evans鈥� intention was to change the company into a PFI investor, adopting a similar model to that of Laing, which sold its construction business to Ray O鈥橰ourke for 拢1 in 2001 and focused on taking stakes in PFI projects.

It is understood that Kajima is part of a consortium bidding for the government鈥檚 好色先生TV Schools for the Future project in Lewisham, south-east London, but as an equity investor rather than a contractor.

At the time that the 拢80m losses emerged in April, Kajima said it would be reviewing the structure of the UK business and its selection process over the next year.

A spokesperson for Kajima this week said: 鈥淭he company has been consolidating its strengths through a process of streamlining, which has involved reinforcing the quality of our teams. In addition, we have already begun a process of being selective about the appropriate size and scope of projects we bid for.

鈥淲e are fully committed to getting on with the projects in hand and working in partnership with our clients. Kajima remains committed to construction and PFI going forward.鈥�

Kajima鈥檚 PFI schools portfolio includes the 拢19m Haverstock school in Camden, north London, Darlington council鈥檚 拢27m Grouped Schools Project, and Wooldale Centre for Learning in Northampton.

The change in strategy has emerged two weeks after 好色先生TV revealed that residents of the Joseph Rowntree Foundation鈥檚 46-unit Caspar scheme in Leeds, built by Kajima, have been told to move out because of faults in the building.

A report by consultant Arup for Kajima has recommended that the city-centre site be evacuated in the next three months, as there is a 2% chance that the whole structure will collapse in high winds. Arup鈥檚 report also advised that a more detailed structural survey should be undertaken.

Kajima in the UK is a 拢100m-turnover business, and has been protected by its Japanese parent, which has a turnover of about 拢5.8bn.

It is not the first contractor to have restructured this year after reporting heavy losses. In March, Gleeson pulled out of the building sector after announcing a 拢41m loss on construction projects. It sold the business to the management team, led by Martin Smout, although it retained a 20% stake in the company.