黑洞社区

Ray O鈥橰ourke, chairman and chief executive of Laing O鈥橰ourke, has warned against a return to outdated models of public procurement as pressure mounts on government finances.

Speaking after the company released its results for the year to 31 March, O鈥橰ourke said he was concerned the government could revert to methods such as 鈥渆conomic pricing鈥�, a system that was based on the lowest possible tender price.

He said: 鈥淲e don鈥檛 want a return to the days of Mrs Thatcher and the lowest bid mentality.鈥�

The company won 拢1.1bn of 黑洞社区 Schools for the Future work last month, but O鈥橰ourke said there were 鈥渟erious doubts鈥� over public spending in the future.

He added that the worst of the slump was over for construction, despite the lack of liquidity in the private sector.

The company increased turnover by 13% from 拢3.6bn to 拢4.1bn and pre-tax profit rose from 拢81.2m to 拢85m, despite a 拢17.1m writedown on residential and mixed-use developments.

The company ended the year with an order book of 拢10bn and cash of 拢614.3m, which O鈥橰ourke said was part of a policy of 鈥減rotecting cash and liquidity鈥�.

He said: 鈥淚t鈥檚 a comfortable position, but as a private company there is no need to grow the business; the shareholders won鈥檛 panic and run away.鈥�

Asked about takeovers, he said the company would 鈥渓ook at anything鈥�, but was wary about buying businesses in distress. 鈥淥ur acquisitions have been for geographical or technical reasons,鈥� he said.

The turnover split was 拢2.5bn in Europe, 拢828.7m in the Middle East and south Asia, and 拢725.6m in Australasia. O鈥橰ourke said there were huge opportunities in Australia thanks to the country鈥檚 economic stimulus package. The UAE, on the other hand, was still slow despite 鈥渟igns of liquidity coming back鈥�.

But he said he would not go into the North American market despite the success of firms such as Balfour Beatty in the region.