Lendlease sets aside £114m for recladding work

The firm has set aside £114m to cover liabilities which it said come mainly from its Crosby business acquired from Berkeley group for £261m back in 2005.

The provision relates to over 50 buildings developed by Crosby, which is no longer owned by Lendlease.

Lendlease is one of 46 house builders/developers to have signed up to the UK Government remediation contracts. Although discussions with the UK Government saw it sign up two weeks after the official deadline set by Housing and Levelling up secretary Michael Gove.

The firm revealed that it still remained in discussions with the Government over the issue.

It said the remediation spend would be spread over five years and had not taken into account clawback from the supplychain and insurances.

The provision heavily impacted on the results of Lendlease Europe Holdings which includes both construction and property businesses in the region.

The holding group reported a £230m loss from £802m revenue for the year ended 30 June 2022, with net assets standing at £208m.

Lendlease also reported a £60m impairment from its Lendlease Deptford business following a decision to call a halt to early construction work two years ago at its ambitious 1000-home Deptford Landing scheme.


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