Australian group is hit by £419m of writedowns while net operating profit falls 29% to £155m

Lend Lease has blamed difficult market conditions and writedowns for a £329m full-year loss.

The Australian contractor and developer suffered £419m of writedowns including £90m in the second half of the year.

Net operating profit after tax fell 29% to £155m for the 12 months to June 2009.

The group said 'subdued trading conditions' in UK residential markets was partly to blame for the fall in operating profit.

In the UK Bovis Lend Lease is building the 2012 Olympic village and the Salford Media City.

Group CEO Steve McCann said: ”Lend Lease has performed well, despite the very challenging market conditions and while we remain cautious, we are confident about the group’s outlook."

“We materially reduced the cost base. The group has very strong liquidity and is well capitalised. This sets Lend Lease up well to take advantage of its leading market positions as the cycle begins to turn."