However, given that it lost 拢219.9m the previous year, the board of Laing O鈥橰ourke is happy enough and is projecting a return to profit for the current financial year that ends this month.
Excluding exceptional items and joint venture results, Laing O鈥橰ourke recorded underlying profit of 拢35m in FY 2017 (2016: loss of 拢82m). This turnaround was driven by a return to profitability in the core UK market.
Total revenue was up 26% in the year to 拢3,172.5m (2016: 拢2,513.2m).
Continuing losses from joint ventures of 拢86.2m were incurred, of which 拢83.2m was on phase one of the Montreal hospital project in Canada, completed in October 2017.
Laing O鈥橰ourke鈥檚 Construction Sant茅 Montr茅al joint venture with Obrascon Huarte Lain has been replaced for the remaining stage of the Centre Hospitalier de l'Universit茅 de Montr茅al (CHUM) project.
Group chief executive Ray O鈥橰ourke said: 鈥淭he group has responded strongly to recent challenges, not only by restructuring the UK business, but also through new processes and controls on project selection, operational delivery, digital data and risk and assurance.
鈥淲e have set a new strategic mission and are absolutely aligned with the UK government鈥檚 Industrial Strategy, which calls for construction to demonstrate productivity in-line with the aviation and automotive engineering sectors by 2025. Indeed, our aim is to outperform that timetable, with our ongoing investments in advanced manufacturing leading a step-change in safety, quality and efficiency.
鈥淭he market is already responding to our DfMA 70:60:30 offsite manufacturing capability in a remarkable way, and we have a series of negotiated projects now in our robust and growing global pipeline.
鈥淚 take this opportunity to thank our lender group and all of our stakeholders 鈥� including clients, subcontractors and supply chain partners 鈥� as well as our supporters in government and the media, for their encouragement while we completed this significant transformation.
鈥淚t has been a difficult time for our sector, and recent events have only reinforced the importance of Laing O鈥橰ourke鈥檚 early actions to redefine the business. Our leadership team across the group has been steadfast and their achievements remarkable.
鈥淲e will continue to build on this momentum, backed by recent high-profile project wins, to become the recognised leader for innovation and excellence in the construction industry.鈥�
During the current financial year, to 31st March 2018, Laing O鈥橰ourke has made several disposals, including: on 21st July 2017 it sold its investment property in Canal Harbour Development Company for 拢27.8m; on 8th September it sold the trade and assets of Bison Manufacturing Limited for 拢20m; and on 1st February 2018 it sold its subsidiary Explore Investments No. 3 Limited with its Canadian subsidiaries for 拢33.6m.
|
FY17 FINANCIAL SUMMARY |
||
|
FY 2017 (拢m) |
FY 2016 (拢m) |
|
|
Total revenue |
3,172.5 |
2,513.2 |
|
Group revenue |
2,934.6 |
2,353.6 |
|
Gross profit |
208.4 |
125.8 |
|
Underlying group operating profit/(loss) before exceptional and JV results |
35.0 |
(82.0) |
|
Loss from operations |
(63.4) |
(242.7) |
|
Taxation |
6.3 |
25.7 |
|
Loss after tax |
(60.6) |
(219.9) |
|
Net funds |
65.5 |
45.4 |
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