Lend Lease increases profit by 24% despite lacklustre performance by UK construction arm which sees 4% profit fall
Developer Lend Lease posted a 24% increase in operating profit despite a disappointing performance by its construction business Bovis Lend Lease.
Operating profit rose to £143m for the year ending June 2006 compared with £115.6m for the year ending June 2005.
Profit at Bovis dropped 4% to £54.5m from £57m. This lacklustre performance was in part attributed to its UK operations where there was a £14m writedown on the £400m BBC’s Broadcasting House Scheme in London and the £80m Bridgewater Place Tower in Leeds.
Bob Johnston, global CEO, of Bovis said: “The UK had a strong second half result which helped to offset the first half margin deterioration.”
Total operating revenue at Lend Lease rose 17% to £3.8bn up from £3.3bn. Operating revenue from PFI work fell 24 % to £31m compared with £1m the previous year.