Firm slumped into red before being sold to US group Atlas Holdings
Lendlease Construction (Europe), now renamed Bovis Construction, suffered heavy losses before US investor Atlas Holdings entered talks to buy the business.
Results for the year ending 30 June, which have just been published at Companies House, show that Lendlease Construction suffered a loss of £16m (2023: £12m profit) on revenue down 7% at £471m.
The firm fell into the red after reporting total provisions amounting to £45m covering legal claims and remediation work on legacy contracts.
US private equity owner Atlas completed the deal last week to buy Lendlease’s UK contracting business and at the same time resurrected the Bovis name, retired 14 years ago.
New Bovis CEO David Cadiot, who signed off last year’s Lendlease Construction Europe accounts, said: “Profit for the year has been adversely impacted by provisions made against historic contracts.”
“These provisions are made against a contract type that Lendlease no longer engages in and
are considered an exceptional expense by directors.
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“There has also been provision made against long-standing receivable balances. The business is actively working towards recovery of these balances, but management no longer views the recovery of these as highly probable. ”
He said the business had a strong platform to build on looking forward with pipeline of secured and preferred bidder projects of £2.8bn at year end.
During 2024, the contractor was named preferred bidder to deliver the Republic, the commercial building at Landsec’s Manchester Mayfield regeneration project, and Crystal Palace Football Club’s new stand at Selhurst Park.
Headcount at the business fell 12% to 976 staff over last year.
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