Laing O鈥橰ourke made a profit before tax of 拢18.1m in the year to 31st March 2024 on group revenue up 18% at 拢3,990m.
The previous year it had made a pre-tax loss of 拢288.1m on 拢3,341m group revenue.
That 2023 loss included more than 拢195m of exceptional items, most of which were claims provisions, including a long-running dispute over a contact in Australia completed in 2017.
This year, exceptional items have been kept below 拢40m, including 拢5.6m of redundancy costs and 拢19.6m for putting right defects under the Building Safety Act 2022.
This year鈥檚 results show pre-exceptional 聽earnings before interest and taxation (EBIT) of 拢75.6m and post-exceptional EBIT of 拢40.0m.
The Australian business continued to perform strongly, the company said, and in the UK the business has overcome a period of record inflation that had impacted the profitability of fixed-price contracts.
Laing O鈥橰ourke generated net cash of 拢278.5m last year and grew its order book from 拢10.0bn at the start of the year to 拢10.8bn by the end 鈥� the largest it has ever been.
Group chief financial officer Rowan Baker, who leaves later this month for a new job elsewhere, said: 鈥淭hese results show significant improvement in our group performance. The business has returned to profit and is recovering well from an unprecedented set of challenges in FY23. We have grown group revenue significantly, by 18%, have strong net cash of 拢278.5m and added another 拢800m to the order book. Allied to our refreshed group strategy, which is reducing our exposure to market events beyond our control, these accounts give the business reason to be confident about the future.鈥�
Cathal O鈥橰ourke, who took over as chief executive from his father Ray in July, said: 鈥淚 am delighted to confirm a return to profit for our business. This provides stability and a platform from which we can keep building certainty and resilience. I鈥檓 particularly pleased that we continue to win work in our priority sectors in both operating hubs 鈥� it assures me we have the right strategy in place to de-risk our portfolio and achieve long-term sustainable growth.
鈥淒elivering these results has taken a huge amount of work by our people and I want to thank them for their hard work and commitment.
鈥淭here remains much for us to do to unlock the full potential of our business and transform the industry so that it can deliver the buildings and infrastructure governments in the UK and Australia need to keep their countries secure, make the energy transition and protect the health of their citizens. We have the people, experience and technologies to deliver these essential works in a better way, and that makes us excited about the future.鈥�
Rowan Baker鈥檚 replacement as CFO is her deputy, Paul Teasdale, who joined Laing O鈥橰ourke in 2018 from Lendlease and previously spent nine years at American Express.
Laing O鈥橰ourke chair Sir John Parker said: 鈥淭his recovery has been achieved despite ongoing market turbulence, which makes it more impressive. I am confident we have in place the right strategy, refreshed leadership, and a new organisational structure to keep building certainty and resilience.
鈥淎s she returns to work for a listed company, I want to extend our thanks to Rowan Baker. She has been our CFO during a volatile period and has helped the business navigate the impacts of the pandemic and unprecedented inflation. We wish her well.鈥�
Rowan Baker added: 鈥淚t has been a privilege to be part of Laing O鈥橰ourke for the last four years, working with exceptional people to deliver projects of national importance.鈥�
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