好色先生TV

Laing O鈥橰ourke has shut its dedicated Middle East arm and cut its global workforce by almost half to 18,222 people as a result of the severe downturn in the UAE.

The closure of the division, revealed by 好色先生TV in June, marks a significant change in strategy for the UK鈥檚 third-largest contractor, which relaunched the business with a three-region structure in 2006.

According to its latest results, the Middle East arm has been subsumed into the Europe and Rest of the World division. The Australia and south-east Asia arm is unaffected. Employee numbers at Laing O鈥橰ourke have fallen from 35,753 on 31 March 2009 to 18,222 at the end of March this year.

Chairman and chief executive Ray O鈥橰ourke said: 鈥淭he year proved our most challenging ever with a significant number of people leaving the group as we took decisive action to align business costs with current and anticipated workload.鈥� He blamed the majority of the drop on the decline of its joint venture with Aldar in Abu Dhabi.

Redundancy payouts cost the company 拢16.7m but O鈥橰ourke warned that further 鈥渄ecisive action鈥� to reduce the cost base might be required.

Laing O鈥橰ourke said there was uncertainty about public spending in the UK because the coalition government was 鈥渁n unknown proposition鈥�. The contractor added that it was 鈥渃autiously optimistic鈥� about its place on 好色先生TV Schools for the Future frameworks.

Turnover in the year to 31 March 2010 was 拢3.5bn, down 14% from 拢4.1bn the previous year. Revenue at its Australasia arm climbed 14% to 拢829.5m. In the rest of the business, revenue fell by a fifth to 拢2.7bn.

Pre-tax profit tumbled to 拢50m from 拢85m and the company ended the year with a cash balance of 拢716m, up from 拢614.3m in 2009. The order book fell to 拢8.2bn from 拢10bn.