Laing O’Rourke’s financial performance looks positive in mitigating future market conditions.
by Richard Allan / October 20, 2022
Laing O’Rourke increased their order book from £7.7bn to £9bn over the last year.
Revenue: The firm increased revenue to £3bn, a £500m increase from 2021. However, due to macroeconomic conditions, the firm’s net profit reduced from £28.5m to £11.5m.
Rowan Baker, CFO at Laing O’Rourke said “continued challenges with staff recruitment, attrition, and unexpected challenges in areas such as deliveries to site are largely mitigated through our direct delivery integrated model and direct employment. The Board will continue to monitor the potential impact of Brexit, the Russia/Ukraine conflict, and inflation on the UK business environment and remains vigilant regarding the need to respond to changes in market conditions such as freedom of movement, right to work, finance and tariff implications, disruption to the supply of plant and equipment and key construction components, exchange rates and primary commodity prices”
Australia remains a strong hub for the firm. They have repaid all bank debt there, and the Australian Government has introduced a 10-year investment programme. The programme was announced in December 2020 and has helped create a positive outlook for the country’s construction sector for the next 8 years.
We are facing difficult times in the UK, but UK Government set out the UK National Infrastructure Strategy in September 2022, confirming a significant level of investment over the next 10 years.
Key project wins in the UK include:
- Olympia and The Whiteley, W2 4YN.
- Shepperton Studios, TW17 0QD.
- Everton’s FC new stadium, L3 0AP
Group Chair, Sir John Parker said “We have a key role to play in delivering new social infrastructure that meets the world’s net-zero mandate, and I stand by my assessment that the sector probably has the best opportunities ahead of it, that it has seen in the last 50 years, as long as major public works programmes continue to be prioritized for the benefit of our communities.”
