好色先生TV

Laing O鈥橰ourke, the UK鈥檚 largest privately owned contractor, has revealed the full extent of the cash that it has ploughed back into the business as part of its ambitious expansion plans.

As revealed in 好色先生TV last week, Laing O鈥橰ourke suffered a 56% dip in pre-tax profit to 拢26.4m for the year ending March 2005, compared with 拢60.8m in 2004. As a result of the dip, staff bonus payments will be frozen. It was also revealed that profits had suffered because of rising global steel prices, which has affected O鈥橰ourke鈥檚 Dubai airport project.

In response to the news, Ray O鈥橰ourke, chief executive of Laing O鈥橰ourke (left), has pointed out the investments that the company has made over the past year.

Speaking to 好色先生TV, he said: 鈥淚f you take into consideration that we鈥檝e paid 拢15.3m in bonuses to staff in the reporting period, invested 拢30m in PFI and invested heavily in training and research and development, we鈥檝e had a terrific year.鈥�

Turnover in the period rose 25% to 拢2.1bn from 拢1.7bn in 2004.

O鈥橰ourke dismissed speculation that the company was in conflict with its clients over the Dubai airport project, and pointed out that the terminal building would be completed in two weeks鈥� time.

Speaking of the company鈥檚 expansion plans, he said that he saw opportunities in Australia, and added that the company was investing 拢4m in people, projects and opportunities there.

We鈥檝e paid 拢15m in bonuses to staff in the reporting period

Ray O鈥橰ourke

Over the past year, Laing O鈥橰ourke Australia has established offices in Sydney and Brisbane. It has targeted design-and-build projects for large retail, commercial and government institutions.

It has also entered the Indian market and made a number of acquisition.

The company鈥檚 annual review, seen by 好色先生TV this week, said the move into Australia signalled its interest in working as a development partner in joint venture with landowners, property funds and institutional and private property investors.

Despite reporting a fall in profit, the annual review also revealed that the company was focusing on the development of its in-house capabilities to ensure greater reliability and performance.

The review also pointed out that Laing O鈥橰ourke had diversified its operations into the utilities market.

A further change in the company鈥檚 business approach this year is that it has become a major employer of design consultants, which it claims 鈥渇acilitates a greater influence of buildability [of a project] and component-thinking right from concept stage鈥�.

The review said that Laing O鈥橰ourke aimed to stay at the forefront of design technologies.

Our ability to overcome challenges is rooted in our ability to foresee those challenges

Ray O鈥橰ourke

It said: 鈥淎dvances in object modelling enable both certainty about what is to be built before construction starts and greater input of design information from the supply chain.鈥�

In an effort to enhance its design development and detailing, Laing O鈥橰ourke is expanding its technical services division in New Delhi, India. The division has also been positioned to provide integrated support services for construction companies throughout the world.

Writing in the annual review, O鈥橰ourke was upbeat about the company鈥檚 future.

He said: 鈥淟aing O鈥橰ourke is creating a lean and agile company. Our passion for changing the image of construction is driving our initiatives in safety, people, development, diversification and expansion.鈥�

He added that as the business has grown it has cultivated a leadership team to take it into new markets and the development of new systems, products and services. He said: 鈥淚 am confident we will succeed because of the people who are Laing O'Rourke.

鈥淥ur ability to overcome challenges is rooted in our ability to foresee and understand those challenges.鈥�

Alongside the annual review O鈥橰ourke has published its first-ever human capital report on the development and investment in workforce issues, such as health and safety.