One-off accounting gains help firm return to balck in last set of numbers filed under former parent’s ownership

One-off accounting gains helped Bovis return to the black last year in the firm’s last set of results filed under former parent Lendlease’s ownership.

Australian company Lendlease sold its UK construction business to US private equity firm Atlas Holding last year with the deal formally completing on 1 April. Atlas, which paid £35m for the business, renamed it Bovis.

In its results for the nine months to 31 March last year, Bovis Construction (Europe) posted a pre-tax profit of £56m from a near £14m loss for the 12 months to 30 June 2024.

bovis hats

Atlas bought Bovis last year from the contractor’s former owner Lendlease for £35m

In a note accompanying the accounts, now filed at Companies House, the firm said: “During the period, under the terms of the sale, the Company became indemnified for a number of provisions, resulting in a reversal of provisions of £35.4m recorded as a credit to the income statement.”

Turnover fell from £465m to £291m – which on a monthly basis meant income dropped from £38.7m to £32.3m, a 17% fall in like-for-like revenue. Bovis has now changed its year-end to 31 March.

Bovis admitted there had been “a period of uncertainty during the sale process” which saw several jobs it had initially won, including the redevelopment of ITV Studios on London’s South Bank, retendered and picked up by rivals.

But the firm has picked up a string of schemes since the Atlas takeover including the £450m 60 Gracechurch Street for Sellar, the £150m St Thomas Yard scheme for GPE and the £200m redevelopment of the London Stock Exchange at Paternoster Square. It is also one of 10 firms on the government’s New Hospital Programme framework.

Bovis chief executive David Cadiot said: “With a strong order book, a renewed focus on sustainable growth, and the backing of a long-term strategic investor, the business is confident in its ability to deliver consistent profitability and value creation over the medium and long term as its preferred pipeline converts.”

The firm said year-end cash fell to £27m from £91m after a £202m dividend was paid out ahead of Lendlease selling the business to Atlas.

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