The privately-owned company鈥檚 last reported accounts show hefty losses in Europe but record profits in Australia.
Laing O鈥橰ourke鈥檚 Australia business made a profit after tax of 拢76.5m in the year to 31st March 2015 (2014: 拢43.5m) on revenues of 拢1.5bn.
By contrast, the European division lost 拢58m, largely due to huge investment in offsite construction and fabrication facilities. Total group revenues were 拢3.85bn.
The decision to sell the Australian business is prompted by a desire to raise funds to prop up the European arm and exploit opportunities available.
Chairman and chief executive Ray O鈥橰ourke said: 鈥淒uring the fourth quarter of 2015 the Laing O'Rourke Group Executive carried out a strategic review of its business portfolio, including options as to the allocation of capital over the remainder of this decade. This review was partially triggered following unsolicited approaches from a number of parties expressing interest in acquiring parts of our business, including our very successful Australian business.
鈥淭his is reflective of both the strength and attractiveness of this element of the group which, having performed well in recent years, is now strongly positioned in the emerging infrastructure market with blue-chip clients, a solid pipeline, a talented leadership team and great people. Accordingly a formal sale process will now commence, led by HSBC Investment Bank and supported by our other advisors.
鈥淎nother key conclusion of the review was that the European business and the UK in particular was very well placed for strong growth potential, which will be further fuelled by the government鈥檚 renewed focus on infrastructure and new housing.
鈥淚f we are to seize these growth opportunities, further UK investments will be required especially in areas that promote our competitiveness and the attractiveness of our offering to clients.
鈥淐onsequently the group and the European business will focus on streamlining its organisation and align its structures, processes and overheads to capture the full operational efficiencies and cost benefits which will flow from the current and future investments in off-site build and advanced digital engineering. This is an area in which the group intends to maintain its leadership position, maximise its competitiveness and continue to provide innovative solutions to its clients.鈥�
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