Lendlease profit slips | Construction News

Lendlease has seen a slight dip in pre-tax profit in Europe on the back of a post-COVID market slowdown.

For the financial year ending 30 June 2022, the firm achieved a profit before tax of £18.9m, down from £20m in the previous year, while revenue stayed steady at £554m.

Its annual report and financial statements show that net assets rose by 9 per cent to £202.6m, while the company’s cash-on-hand balance fell slightly to £72.1m. It had no external debt.

During the past year, Lendlease has started work on site at a retrofit job at 90 Long Acre in central London, and continued work at its International Quarter London and Elephant Park sites.

The Long Acre development, worth £120m, will see the refurbishment of 260,000 square feet of mainly office space in Covent Garden.

However, last month saw warnings that the company’s £325m restoration of Manchester Town Hall was facing an overspend of £17m due to shortages of key materials, as well as uncertainty over energy costs and the availability of specialist labour.

In a statement, managing director Simon Gorski said the company continued to benefit from a strong pipeline of work despite the recent deceleration in activity across the sector.

“The impact of COVID has meant market activity has been slower through the previous two years, but we have noticed a significant increase in high-quality opportunities coming to the market,” he said.

“We have increased bidding activity to capitalise on these opportunities with several significant opportunities during the year and a number of projects at the preferred-bidder stage.

“These wins have allowed us to maintain our strong pipeline of profitable, sustainable projects, unlocking benefits for our clients and the company.”

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