Laing O’Rourke’s UK arm has confirmed it has completed a three-year refinancing deal as it releases its delayed 2017/18 financial results.
The whole Group’s statutory earnings before interest and tax showed a loss of £27.5M, but that was an improvement of £24.9M compared to the £52.4M loss in the previous year. The Group’s figures include the UK, Canada and Australia. The accounts filed today at Companies House show that the group made a loss before tax of £43.6M for the year, compared to £66.9M the year before. The group’s revenue for the 2017/18 financial year was down to £2.9bn, from £3.1bn the year before.
In its Europe division, which includes the UK, UAE and Canada, it returned to a profit of £10.3M from a loss of £51.9M in 2017, benefitting from a reduction in losses in Canada from £83.2M to £26.4M as a problematic PFI hospital construction project was completed.
In the UK, the end of year order book had a value of £8bn.
The UK refinancing includes a £177M revolving credit facility over three years.
Group chairman Sir John Parker said: “In my first year as chairman of Laing O’Rourke, I have experienced first-hand the mounting challenges to the construction industry, which only increases the resolve of the Board to continue to drive innovation, build strong relationships with all of our stakeholders, and influence realistic risk and reward policies in public sector procurement.
“There is no question that government, financial institutions and industry must work together to correct systemic barriers and outdated practices to revitalise an industry that would benefit greatly from progressive thought and action. Perhaps never before has strong leadership been needed as much as it is needed now.”
Major projects the firm is working on in the the UK include Hinkley Point C nuclear power station in Somerset, where it is part of the Bylor JV with Bouygues (pictured).