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Bovis Lend Lease UK has completed a restructuring of its business just three months after it announced falling profits with a £14m writedown on two problem projects.

Chief executive Jason Millett has promoted Phil Wade, the firm's head of projects, to the new position of chief operating officer.

Millett has also created a retail division to reflect the business' future workload in the sector. It will sit alongside divisions focusing on PPPs, and strategic clients, as well as the joint division of accommodation and defence.

As part of the restructuring, Doug Chalmers, who is overseeing the firm's Battersea power station project, will now also act as head of the regions and technology. Under the previous structure Bovis was split into north and south divisions.

Millett said: "We have reshaped our business in the UK to take advantage of future market opportunities. Going forward we will have six distinct business streams, aligned exactly with our key strengths and equipped to support our ambitions for future growth."

A Bovis source said the overhaul was not in response to a drop in profit announced at the end of February. In its half-year results the company announced after-tax profit had dropped 50% to £16m. Its return on European projects was £300,000, compared with £14.3m in 2004.

It is understood that the firm's Australian parent was disappointed with the performance of its UK arm, especially as a £14m provision was made against the £400m BBC's Broadcasting House scheme in London and the £80m Bridgewater Place Tower in Leeds.

The source said Bovis Lend Lease was still expected to make a profit in the UK and globally for the full year. He said: "This restructuring helps Bovis to focus on its key businesses for the future. Grouping accommodation and defence helps the business meet the demands of key profit streams."

The source added that Bovis' development business, Lend Lease, had bought Stanhope's 14% share of Elliot Lipton's accommodation business, First Base. Lend Lease and Lipton will continue to share equity in the business.

Wade had been heading up Bovis' Olympic work, and it is as yet unclear whether his new role will mean the responsibility passes to another Bovis director.

Bovis has already teamed up with Capita Symonds and construction and engineering company KBR, an arm of Halliburton, to bid for the role of delivery partner for the 2012 Olympics in London.

The team, which will bid under the name "Legacy 2012", faces competition from Mace-Laing O'Rourke-CH2M Hill, Balfour Beatty-Amec-Jacobs, Parsons Brinckerhoff-Taylor Woodrow-EC Harris, and Bechtel.

The Olympic Delivery Authority this week said the shortlist for the delivery partner contract would be announced within a fortnight.