Loss at European construction business follows problem jobs and restructuring costs
A poor performance by Lend Lease鈥檚 European construction arm has dragged down its results for the region, in full-year results to 30 June 2013 published today.
Lend Lease鈥檚 European construction arm reported a 拢8.7m after-tax loss, compared to a 拢12.3m after-tax profit last year, while the division reported revenue of 拢510.5m, down 20% on the previous year鈥檚 拢639.7m.
The construction arm鈥檚 figures dragged down the firm鈥檚 overall European performance, with overall after-tax profit down 2% to 拢57.6m from 拢59m, while revenue contracted 14% to 拢661.9m from 拢767.3m.
The firm blamed the construction loss on the underperformance of 鈥渟ome projects鈥� in the second half of the year and the 鈥渃ost of restructuring the UK business.鈥�
Lend Lease鈥檚 European development arm鈥檚 拢100m sale of Lend Lease鈥檚 50% stake in the 150-acre Greenwich Peninsula scheme, which completed in July 2012 for a 拢25m profit, was the 鈥渕ain contributor鈥� to European profit, the firm said.
Lend Lease is the developer and main contractor behind regeneration plans for Elephant and Castle in south London (pictured).
The Australia-based firm鈥檚 global revenue and after-tax profit grew over the period, up 5.7% to 拢7.1bn and up 10% to 拢319.3m respectively.
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