Australian firm says once sale of UK arm completes, company will concentrate on domestic market
The construction arm of Lendlease saw revenue fall in the first half and the business sink into the red, the firm said in interim results announced overnight.
The Sydney-based firm gave no update on how the sale of its UK business to US private equity firm Atlas Holdings was progressing other than to say that on its “completion, Lendlease will have exited its international construction operations”.
Last month, Lendlease announced it had agreed a sale of the UK construction business to Atlas for £35m with the deal due to be wrapped up by the middle of the year. Atlas has said Lendlease will be renamed Bovis.
Once the UK sale is signed off, Lendlease will concentrate on construction jobs in Australia only.
Income at the group’s construction business fell 27% to AUD$1.9bn (£960m) in the six months to December 2024 while the firm racked up a AUD$25m (£12.6m) loss before tax at the construction business, down from a AUD$58m (£29m) profit last time.
It declined to name the jobs but said this was “due to losses predominantly on two projects, which were impacted by material construction cost inflation, subcontractor insolvencies and productivity issues. Recoveries are being pursued which have not been taken into account in this result.”
It added that its loss-making jobs would “largely” be complete in the second half with a return to profitability “expected” during the period.
The firm is due to announce its results for the year to June on 18 August.
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