Construction sector remains under strain, warns Laing O'Rourke
Crossrail builder Laing O’Rourke, one of the UK’s biggest contractors, has said turbulence across an “oxygen-starved” construction sector means it will be late posting annual accounts.
The privately-owned company, which employs around 15,000 people, said the industry has seen a number of firms collapse during 2018 and consequently it had been “defeated by process”.
It continued: “This has impacted the approach of banks, insurers, regulators and auditors – and ultimately it will prevent Laing O’Rourke closing out its formal statements in the coming weeks.”
In recent years the construction sector has faced a slowdown in public sector spending, delayed investment decisions and the collapse in January of Carillion.
Laing O’Rourke filed its 2017 accounts in March, five months late, after agreeing an interim funding package with its lenders, including HSBC. Pre-tax losses were £67m, an improvement on 2016’s losses of £246m.
The builder said it had completed the refinancing of its Australian business and would post a profit for its UK and global operations this year, although it did not give specific guidance. Accounts were due to be filed with Companies House by 30 September but the builder said it would not file until Christmas “at the earliest”.
Chief executive and owner Ray O’Rourke said: “Our industry has witnessed the demise of a number of companies and the withdrawal of significant funding this year. This has put enormous pressure on parties across the sector and slowed down all regulatory, financial and administrative processes.
“Three million jobs in the UK rely on construction, and we have nation-building infrastructure to deliver. It is a tragedy to see the industry of starved of oxygen like this.”
Laing O’Rourke, which built Cardiff’s Millennium Stadium and Heathrow Terminal 5, was formed in 2001 when Ray O’Rourke bought Laing Construction for £1.
Listed construction rivals such as Balfour Beatty and Kier were firmly higher on Monday, however.