Australian firm spent A$170m on reorganising business last year
Lendlease sank into the red last year with the firm blaming the impact of covid-19, a restructuring and pulling out of non-core work for the slump.
In its results for the year to 30 June 2022, announced earlier this morning, the Australian firm posted a pre-tax loss from continuing operations of A$177m (拢103m) 鈥� down from the A$274m (拢160m) profit it made last time. Income slipped 2% to A$8.8bn (拢5.1bn). It said its post-tax loss was A$99m (拢58m) from a A$222m (拢129m) profit last time.
The firm, which is expected to find out soon whether it or Mace has won a 拢350m office scheme at 120 Fleet Street, added: 鈥淩esetting the organisation, including simplifying the group鈥檚 operating model and addressing legacy issues while managing the ongoing impacts of covid, affected our financial performance.鈥�
It said its non-core businesses included its services arm with the firm saying the restructuring had produced annual savings of A$172m (拢100m) with Lendlease spending A$170m (拢99m) on restructuring costs.
Its construction business posted revenue up 3% A$6.6bn (拢3.8bn) but it said income had been hit by the prolonged impact of covid in the Americas region which would affect 2023鈥檚 performance.
Supply chain constraints and cost pressures, such as the escalating price of materials, meant margins at construction slipped to 2% from 2.7% with earnings dropping 24% to A$131m (拢76m).
The firm warmed that margins for 2023 would be in the 1.5% to 2.5% range 鈥� lower than its target range of between 2% and 3%.
Its backlog revenue for construction was A$10.5bn (拢6.1bn), down A$800m (拢467m) on 2021鈥檚 number. Lendlease said A$7bn (拢4bn) of this figure came from its home market.
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