Firm previously known as Lendlease also saw turnover slide to below £500m
Losses on historic jobs have sent Bovis Construction into the red, the firm’s latest accounts have revealed.
The firm, which was known as Lendlease Construction (Europe) until being bought last month by US private equity company Atlas Holdings, said it racked up £16.4m pre-tax loss in the year to 30 June 2024, down from an £11m profit last time.
It blamed the slide on “provisions made on historic contracts made against a contract type that Lendlease no longer engages in”.
The firm declined to say what sort of contract it was referring to but the firm currently tends to carry out construction management and design and build work.
“Following developments post 30 June 2024, these balances are expected to be substantially recovered,” the firm said.
It also made note of a provision made against “long standing receivable balances”. It said it was working toward recovery of these balances but that management no longer viewed this as “highly probable”.
>> Read more: Lendlease officially renamed Bovis after £35m sale to US private equity firm completes
Revenue was down 7.5% to below £471m in the period, which it said was the “realisation of depressed bidding activity” during the covid-19 pandemic.
During the year, Bovis was announced as the preferred bidder on several projects, including a commercial building known as the ‘Republic’ in the Mayfield regeneration project, as well as a new stand at Selhurst Park, the home of Crystal Palace Football Club.
The company ended the year with net assets of £190m, down from £211m, and a cash on hand balance of £91.2m, down marginally from £94.1m.
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