Bovis will reveal hit in February interims after problems on Manchester Joint Hospitals project and Bridewater Place in Leeds
Bovis Lend Lease has taken a A$120m (£48m) hit on two of its problem contracts, the Manchester Joint Hospitals project and Bridewater Place, an office development in Leeds.
The provision will be made within the company’s interim results, due to be announced on the 28 February.
Bovis said it followed a comprehensive review of operations at the £382m Manchester project, and of “ongoing delays at Bridgewater Place.”
Bob Johnston, who was appointed as Bovis’ global chief executive last year, said about the Manchester project: “One of the key issues is that right from the outset we did not fully appreciate the risk and adequately price the project to meet the complex phasing and handover sequence dictated by the Trust and user groups.”
Graham Hiley has been brought in as operations director to manager Manchester Hospitals, after delivering Queen’s Hospital in Romford for Bovis.
Its parent company, Australian developer Lend Lease, said that it was still on track to deliver analysts expectations of a A$400m (£157m) net profit after tax for the year ending June 2007, despite the provision.
Lend Lease managing director Greg Clarke said the provision in the UK meant that the company’s interim results “would not provide a meaningful guide to expected full year earnings.”