Laing O’Rourke suffers massive £246m loss

Aaron Morby 8 years ago
Share

Laing O’Rourke has suffered a £246m loss after being hit by poor performance of its massive £1.3bn joint venture hospital project in Canada and several now completed problem UK contracts.

Ray O'Rourke says the group has returned to profit in the first half of this year
Ray O'Rourke says the group has returned to profit in the first half of this year

In a short statement this morning Ray O’Rourke, group executive chairman, said: “It is with humility that I have to report our first loss in 15 years of trading as Laing O’Rourke.

“As a private company, the responsibility for its performance rests with me as founder.

“We all know that when recession starts, our industry in particular enters a race to the bottom – regrettably Laing O’Rourke joined in.”

He added: “I can reconcile the losses to a number of projects that are now complete and handed over and a particularly difficult large project in Canada, on which I am pleased to announce we are on track to deliver the project in accordance with the mutually agreed revised timetable.”

O’Rourke put its profitable Australian business up for sale nearly a year ago after revealling a £58m pre-tax loss at its European business last year. At the time group performance was salvaged by Australia which helped the group to deliver an overall £52m group pre-tax profit.

It is now rumoured the Australia arm has been taken off the market after Laing O’Rourke failed to find a buyer.

In his statement for the results to March 2016, O’Rourke said: “I want to assure all our stakeholders that our company is adequately financed, has returned to profit in FY17 and is therefore well-positioned to move forward from these less than satisfactory results.”

The group is now forecasting a slow return to revenue growth, with revenue returning to 2015’s level of around £3.8 by the end of 2019 and then reaching £4bn in 2020.

O’Rourke said: “We have continued to invest in our people, manufacturing, digital technology and engineering excellence, based on our firm belief that this is the future.

“I am pleased to say we continue to believe in this strategy as the market in the UK dramatically improves with the advent of the new nuclear programme, High Speed 2, Heathrow runway and terminals, Thames Tideway and the Government’s drive for more living accommodation – 1 million more homes by 2020

“In addition to this, our Australian business has continued to perform well over the past year, securing significant infrastructure projects mainly through collaborative contracts, in markets that also have record spends forecast up to 2020 and beyond.  These welcome developments are reflected in our record order book.”

Detailed results will be released shortly.

Latest news

Gateway gridlock hits build-to-rent delivery as starts nosedive

Build to rent starts plunge 18% in the capital
20 minutes ago

GBN launches £600m bid race for SMR engineer roles

Owner engineers to provide technical and assurance services
23 minutes ago

Wates hires ex-Homes England chief to head public sector push

Robert Stone to spearhead its public sector and national frameworks strategy
22 minutes ago

Acheson Construction collapse costs suppliers £8.5m

One frustrated creditor seized a telehandler after contractor went into administration
16 hours ago

Dominus wins go-ahead for 173-bed Glasgow scheme

Old Wynd Street job expected to cost around £25m to build
15 hours ago

Safety Regulator misses deadline to clear Gateway 2 backlog

Investors pulling out of funding high rise buildings
23 hours ago

CITB still sitting on £95m cash pile

Staff numbers jump from 666 to 763 as training body wage bill soars
24 hours ago

£500m road surfacing framework market call

NEPO goes out to consultation on north east regional highways deal
24 hours ago

Two share £220m Scottish rail repairs and minor works deal

AmcoGiffen and CPMS win civils and building repair deals
23 hours ago

Builder wanted for £60m London leisure and flats job

Tower Hamlets aims to replace St George’s Leisure Centre in Shadwell
24 hours ago

Contractor confirmed for business park expansion

Roe Developments to start on next phase of Castle Donington scheme
24 hours ago

Driver escapes injury as scaffold collapses onto van

Major three-lift scaffold fall blocks north London high street
6 days ago

Gilbert Ash to be sold to staff

£267m turnover contractor to transition to an Employee Ownership Trust
7 days ago

M Group seals biggest-ever deal with Telent takeover

Digital infrastructure specialist deal lifts turnover to £3bn
6 days ago

Aggregates firm Ashville went down owing more than £3m

Debts revealed in Companies House update
6 days ago

Cardo saves 100 jobs at Breyer roofing arm

Private equity-backed Welsh maintenance group continues to expand
7 days ago

Excavator knocked off lorry going under bridge

Traffic Commissioner inquiry after accident in south London
6 days ago

Czech energy tycoon buys UK’s biggest rebar supplier

Spanish offload Celsa UK operation to be rebranded 7 Steel UK
7 days ago

Caddick Construction targets £400m turnover

Regional shake-up pays off at contracting arm
1 week ago

Redrow chief steps down after Barratt merger

Matthew Pratt leaving after 22 years
1 week ago

United Living names new property services senior team

New CEO and COO appointed to lead growth in housing upkeep and retrofit
7 days ago

Wynne triples turnover in three years to over £90m

Five-year growth strategy pays off
7 days ago

Speedy Hire blames Budget for branch closures

National Insurance rises accelerate closure programme
7 days ago

Builder gets suspended sentence for Covid loan fraud

M&E specialist inflated turnover to claim maximum loan
1 week ago

Scores of M&E firms win places on £400m CHIC framework

Axis Europe and Seddon secured spots on social housing deal
1 week ago

Coroner hears how worker was crushed under digger

Inquest opens into tragedy at Rose Builders site
1 week ago

Billington lowers 2025 forecast amid pricing pressure

Tender prices under pressure due to project delays and cancellations
1 week ago

Willmott Dixon lands Dover town centre revamp

Alliance agreed to regenerate several key council sites
1 week ago

Go-ahead for London City office-to-flats scheme

Hub's 150 Minories job in Aldgate to create 280 co-living homes
1 week ago

Wates mobilises as £200m Middlesbrough scheme approved

Gresham Street scheme includes a hotel, 240 flats and over 400 student rooms
1 week ago

Contractor services