Laing O’Rourke has returned to profit a year after posting a substantial loss, following its latest financial results.
Revenue for the year indeed 31 March 2024 grew 18.2 per cent to £4.0 billion (FY2023 £3.3 billion) generating a pre-tax profit £18.1 million (FY2023: -£288.1 million).
The UK business overcame a period of record inflation that impacted a small number of fixed-price contracts.
Meanwhile, the Australian business continued to perform strongly in FY24.
The latest results show pre-exceptional earnings before interest and taxation (EBIT) of £75.6 million (post-exceptional EBIT of £40.0 million).
Following the contractors substantial loss in 2023, Cathal O’Rourke who succeeded his father Ray as CEO in July, implemented a refreshed strategy that saw its orderbook grow as a result of winning work in healthcare, energy and green power, rail and road, defence, science and research, and data centres.
The Group generated net cash of £278.5 million, and grew its orderbook at the largest its been of £10.8 billion from from £10.0 billion in FY2023.
Cathal O’Rourke, group chief executive, said: “I am delighted to confirm a return to profit for our business, which provides stability and a platform from which we can keep building certainty and resilience.
“I’m particularly pleased that we continue to win work in our priority sectors in both operating hubs – it assures me we have the right strategy in place to de-risk our portfolio and achieve long-term sustainable growth.
“There 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.”
Group chief financial officer, Rowan Baker, will leave at the end of September to become CFO at FTSE 250 company, Essentra. and will be succeeded by Paul Teasdale.
Group CFO Rowan Baker said: “These results show significant improvement in our Group performance.
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.”
Sir John Parker, chair of Laing O’Rourke, said: “This 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.”
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