Firm puts impact of pandemic behind it but losses on Canada hospital continue to edge up
Profit at Laing O鈥橰ourke鈥檚 largest division jumped more than threefold last year as the firm began to recover from the impact of the pandemic.
In its accounts, filed this week at Companies House, the contractor said it had 鈥渕ade continued progress towards delivery of its strategic targets鈥� with revenue up 20% to 拢1.8bn in the year to March 2022 鈥� and was higher still at close to 拢2bn once its share of joint ventures was included. Pre-tax profit was 拢16.2m from 拢4.9m last time.
With profit at Laing O鈥橰ourke plc moving into double figures, the number beat the 拢10.5m it posted in the year to March 2020 鈥� before the pandemic struck 鈥� but was still half of the 拢32.7m it filed in 2019.
The accounts show it was not hit by any exceptional items during the period although it said the costs on a disastrous PFI hospital contract in Canada had edged up again 鈥� by 拢5.3m to a cumulative figure of 拢219.3m.
The hospital opened in October 2017 and O鈥橰ourke said its only role now was 鈥渞esponding to any residual obligations on phase 1鈥�. The second phase, which opened last April, was carried out by another firm.
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.
Laing O鈥橰ourke plc said it had secured 97% of its 2023 revenue and 85% of the following year鈥檚 number. It added that its order book at the end of August this year was 拢7bn.
The accounts show it was also handed a 拢4.7m R&D tax credit and spent 拢33m on R&D, up from 拢30m last time. Staff numbers at the business edged up 4% to just under 6,600 people.
Laing O鈥橰ourke plc covers its operations in Europe, Canada and Abu Dhabi and includes dozens of subsidiaries such as M&E arm Crown House, piling business Expanded, plant hire firm Select as well as shares in PFI hospital schemes including Liverpool children鈥檚 hospital Alder Hey.
The firm has not yet released its 2022 group accounts which include its Australia business. Last time, group revenue edged up 2% to 拢2.5bn in the year to March 2021 although pre-tax profit slipped 9% to 拢41.4m.
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