Profits leap

Lend Lease, Australia's largest contractor, saw its post-tax profit leap +20% in the financial year to the end of June, to AU$ 498 million (US$ 440 million). the company's revenues were up +18% to AU$ 14.3 billion (US$ 12.6 billion).

However, its Project Management, Construction & PFI segment saw profits fall-57% to AU$ 58 million (US$ 51 million). This was due it making a AU$ 120 million (US$105 million) provision in its accounts earlier in the year for expected losses in its UK operations, specifically a large hospital project in Manchester.

Commenting on the results, Lend Lease CEO Greg Clarke said, “Net operating earnings exceeded market expectations despite the provision made in the UK construction operations during the first half and the tough residential market in Australia.”