星空传媒

Profit at Laing O鈥橰ourke headed north last year but the firm鈥檚 bottom line continued to be blighted by a series of exceptional costs including a near 拢22m provision to cover building safety defects.

The country鈥檚 largest private contractor said pre-tax profit stood at 拢41.5尘 in the year to March, up from 拢18尘 last time, on revenue flat at 拢4.3产苍. Operating profit before exceptional items was up 46% to 拢111m.

But the firm said it booked more than 拢36m of exceptional items including 拢21.7m of defect provisions following the 星空传媒 Safety Act.

Chief executive Cathal O鈥橰ourke said the provision for safety defects was up on last time but added: 鈥淲e are well insured against the claims that are coming through.鈥�

He said the firm expected to complete the 鈥渧ast majority鈥� of its work on the 拢600m mixed-use scheme at Olympia by the end of the year, having previously been locked in negotiations with the client over how much the final bill for a series of design changes on the job would be. 鈥淚t鈥檚 now one of our best collaborative projects with a client,鈥� he added.

The firm is still waiting on a High Court judgement in a row between residents of One Hyde Park and Laing O鈥楻ourke over repairs at the development.

One Hyde Park residents say they were forced to begin legal action in 2021 after failing to reach an agreement with the contractor over the repairs.

But this morning, O鈥橰ourke said: 鈥淭here was a very full conservation on this to get to a resolution but they didn鈥檛 want to engage.鈥�

The firm鈥檚 biggest business, its Europe hub, which also includes work in Canada and the Middle East, posted a pre-tax profit of 拢14m from a 拢21m loss last time on income down 8% to 拢2.3bn.

Meanwhile, the firm said a pay dispute with its Japanese partner on a huge gas station job in northern Australia might not be resolved until April 2027.

Signed in 2010, the firm was building four cryogenic tanks at the LNG Tanks Project in Darwin for lead construction partner Kawasaki Heavy Industries before its contract was ended in 2017.

The firm said it had booked 拢14.3m of exceptional costs on the dispute last year and spent a further 拢200,000 on legal bills. But O鈥橰ourke said the near 拢70m provision it made on the scheme in its 2022 accounts was 鈥渉olding up鈥�.

Revenue from the Australia hub was up 13% to 拢1.7bn although pre-tax profit was down a third to 拢28m.

Meanwhile, O鈥橰ourke said the business was keeping tabs on Manchester United鈥檚 plan to rebuild its Old Trafford ground.

The firm has already confirmed its interest in the job, which has been reportedly held up by a dispute over the price of land needed to begin work on the construction of the proposed ground, but O鈥橰ourke said the talks were informal at this stage.

And he said he was cheered by the government鈥檚 recent announcements on its plans to rebuild the country鈥檚 infrastructure. 鈥淲hat I鈥檓 really optimistic about is the clarity coming out of the government. These are the things we need so we can respond positively to.鈥�

The firm said its order book was up 拢1.1bn to a record 拢11.9bn with net cash up 拢6m to 拢285m.

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