DARTFORD, England, Oct. 17, 2019 /PRNewswire/ -- Statement from CEO
Ray O'Rourke on filing of Laing
O'Rourke's FY19 annual accounts:
"Knowing how hard our people have worked in the past year, I
am pleased to present a review that acknowledges the value of their
dedication and business acumen.
"As promised, Laing O'Rourke continues to address the
challenges of ongoing market uncertainty and resulting hesitancy in
both the public and private sectors. We remain committed to the
core conditions that will help us lead a very different
construction industry.
"It should be clear that Laing O'Rourke is dedicated to
navigating the real challenges of the present while progressing
fundamental change in our company, and indeed the industry as a
whole.
"We are continually grateful to our clients, suppliers and
other stakeholders whose support has provided us with enormous
opportunities, despite the complex times."
Ray O'Rourke, CEO
From the FY19 Annual Review:
- Group Managed revenue of £3.3bn.
- Global earnings before interest and tax (EBIT) improved by
£74.7m to a profit of £47.2m.
- The Europe Hub businesses (UK, Middle
East, Canada) closed the
2019 trading year with a £76.1m EBIT result. This was an
improvement of £65.8m on the prior year.
- The Australia Hub contributed £1.9m ($3.2 AUD) EBIT.
- Significant progress has been made in refinancing the Group,
with the UK business completing a three-year refinancing exercise
in February 2019.
- The Australian business refinanced after its FY19 year-end,
completing the process with lenders on 5
July 2019. The renewal date for these facilities is now
31 December 2021, aligned with the
UK.
- The Group demonstrated its ability to generate cash flow with
an improvement in the net funds position of £43.8m to give a
position at the year-end of £132.9m
- Losses from the Canadian Hospital PFI have ceased.
- At the year-end, the Group had an order book of £7.6
billion.
-
- In Australia, this includes
several of the nation's largest defence and urban transport
projects, as well as new works in the mining sector; and
- In the UK, there has been considerable success in securing
complex projects in a range of sectors, including The Factory; a
new cultural space in Manchester,
LD11, further data centre works for repeat client Equinix, Soho
Place, a mixed-use scheme in London and further early engagement works (on
Pre-Contract Services Agreements) to bring a series of residential
schemes to market, particularly in Manchester.
- The business has insulated its operations against Brexit via
detailed scenario and contingency planning, with mitigation plans
for talent and skills retention, labour availability, and plant and
equipment imports – all of which have been independently
audited.
- The Annual Report notes no adverse Brexit impact on current,
live projects. While the UK Government has foreshadowed future
public works to stimulate the economy in a post-Brexit environment,
contract finalisation in 2019 has slowed as the market awaits a
decision on leaving the EU.
Chairman's Comment
Group Chairman Sir John Parker GBE FREng praised the management
team and employees for consistent delivery, closing off legacy
contracts, pursuing its transformation agenda and delivering
credible profits.
However, he added,
"UK construction remains in a troubled state. A number of key
lending banks have signalled their exit from the sector; thankfully
a few remain committed.
"The livelihood of some three million UK employees and the
well-being of those who support and depend upon them must be
secured. The country's sustainable economic recovery and the vital
need to renew our infrastructure requires the driving force of a
modern and successful construction sector.
"There is now a crucial opportunity for the public sector to
reform procurement processes and modernise commercial models. This
can reset the 'tone from the top' within the industry and its
broader customer base.
"At the same time, construction can no longer be driven by
old standards and outmoded thinking. That is why we as a Board
enthusiastically support the ongoing innovative and
transformational agenda of Laing O'Rourke."
FY20 Updated Guidance - UK
As a private business, the Group continues to provide regular
financial updates with its clients, suppliers and stakeholders.
As we enter the latter half of the FY20 trading year, Laing
O'Rourke can confirm:
- UK businesses are all performing to plan and delivering
forecast margins;
- Half-year (30 September 2019)
EBIT for the UK businesses is forecast at £39.6 million; and
- Gross margin of 7.6% is being achieved across the
portfolio.
Laing O'Rourke
Through its operations around the world, across building and
infrastructure sectors, Laing O'Rourke's 2025 mission will see the
business secure its position as the recognised leader for
innovation and excellence in the construction industry.
With a heritage that draws on 170 years' experience and a
diverse group of vertically integrated businesses, Laing O'Rourke
has helped forge cities, communities and economies.
We attract and develop the very best people. Our 13,000 people
across the UK, Australia, the
Middle East and South East Asia deliver engineering
innovation, project leadership and certainty for our clients on the
world's most complex and challenging buildings and
infrastructure.
www.laingorourke.com
@laing_orourke
For further information please contact:
Laing O'Rourke
press office
Tel: +44(0)1322-296445
Email: pressoffice@laingorourke.com