For the year ended 31st March 2022 Laing O鈥橰ourke鈥檚 global revenue reached 拢3.0bn (FY21: 拢2.5bn) but pre-tax profit was just 拢2.7m (FY21: 拢41.4m).
Profit before tax, interest repayments and exceptional items was up 26% to 拢95.5m (FY21: 拢76.0m). However, the adverse settlement of a long-running argument over a project in Australia that was completed in 2017 wiped nearly 拢76m off the bottom line, reducing EBIT to 拢19.8m.
The Australia Hub made a pre-tax loss of 拢6.2m durign the year.
Separate accounts filed in the UK by Laing O鈥橰ourke plc show that turnover in the year to 31st March 2022 was 拢1,993m (2021: 拢1,515m) and pre-tax profit was 拢16.2m (2021: 拢4.9m).
At group level, including the company鈥檚 Australia-based operations, the order book grew to 拢9.0bn (FY21 拢7.9bn).
During the year to March 2021, net debt was reduced by 拢160m to its lowest level for six years.
Chief financial officer Rowan Baker said: 鈥淭he result is a strong, year-on-year improvement across our key financial metrics, with a 20% increase in pre-exceptional revenues and a 26% increase in the underlying earnings before interest and tax to 拢95.5m. We鈥檝e recorded impressive order book growth through FY22, and even further in the first half of FY23.
鈥淥ur performance is bolstered by a more robust balance sheet where net cash further improved by 拢63.0m to 拢339.1m alongside the repayment of all bank debt in our Australia Hub and successful refinancing of our core UK bank debt. In the period all remaining shareholder loans were converted to equity, demonstrating the owners鈥� commitment to our strategic plan.
鈥淭his update from FY22 places us in a very strong position to secure an increasing share of future work in our priority sectors, while we continue to invest in areas that will modernise the industry.鈥�
Chief executive and major shareholder Ray O鈥橰ourke, who has previously said he was stepping down in September but still seems to be there, said: 鈥淟aing O鈥橰ourke鈥檚 results for FY22 reaffirm our confidence in our operating model, which is firmly understood and valued by clients. On an underlying basis, the business continues to go from strength to strength, with a growing order book, growing revenue, and increasing net cash.
鈥淥ur 鈥榦ne business, two hubs鈥� structure operates with transparency, agility and certainty, guided by our core values of care, integrity and courage. We remain focused on accelerating the realisation of our strategic vision for 2025 鈥� and have achieved strong results in advancing digital operations, development of our people, sustainability, inclusion, and wellbeing.
鈥淭here remains much for us to do to fully unleash the huge potential of our business to support economic recovery, transform productivity and create the green infrastructure that is urgently required to protect the planet.鈥�
Got a story? Email news@theconstructionindex.co.uk
