Simon Gorski, managing director of Construction for Lendlease Europe, said revenue had also slipped by around 8% to £509m in the year to June 2023, due to depressed bidding activity over the Covid-19 period.

Gorski said: “During the 2022/23 year, we navigated a complex market landscape characterised by inflationary pressures and market uncertainty.

“We managed these challenges through a risk-focused approach to procurement as well as high quality relationships in the industry with both key suppliers and clients.”

Over its hospital claim, Lendlease went to court to recover costs and penalties from consultant Aecom for fire safety defects found at a 13-storey oncology wing at St James’s University Hospital in Leeds completed back in 2007.

But the case was dismissed because the 12-year liability period had elapsed leaving the contractor taking a hit on the £3m it hoped to recover.

Despite the challenges, net cash at year-end improved to £94m (2022: £72m).