Lendlease’s European construction business made a £3m loss after tax in the second six months of 2015.
The result marks a significant dip in performance from the same period in 2014, when it recorded a profit of £6.7m.
Revenue was up 12 per cent year on year growing from £307m to £343m.
The construction arm’s losses meant that growth slowed slightly for the overall European business, which recorded a profit of £36.5m, down from £47.5m the previous year.
Despite the loss, Lendlease hailed a 126 per cent upturn in new work secured in Europe, boosted by contracts at its developments in Elephant & Castle and the International Quarter in Stratford.
Group-wide, the Australian-based company posted revenue of £3.66bn, up from £2.94bn in the second half of 2014, while pre-tax profit grew from £183m to £212m.