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Laing O'Rourke sees revenue climb to £4.3bn in 2011/12

Laing O’Rourke saw total group revenue increase by almost 8 per cent to £4.3 billion last year as earnings improved slightly on 2010/11, it said this morning.

The contractor issued a snapshot of its performance for the year it completed the successful programme management of the London 2012 Olympic and Paralympic Park.

Laing O’Rourke said managed revenue - which includes share of joint ventures’ revenue, inter-segment revenue and revenue from managed operations - increased 7.6 per cent to £4.3bn in the year to 31 March 2012. It had slipped 6 per cent to £4bn in 2010/11.

The firm said pre-exceptional earnings before interest and taxes rose to £54m, compared with £51.3 million in 2010/11. It had slipped from £110m in 2009/10.

O’Rourke this morning reported an order book backlog of £8.2 billion “creating good medium-term earnings visibility”.

The contractor said it has created over 700 new roles in the Australia Hub to support major infrastructure projects. The firm said there is “good future revenue visibility and a strong pipeline of contract opportunities in key sectors”.

The company last year reported a 50 per cent fall in pre tax profits for 2010. It has not yet posted full financial results – including its pre tax profits -  which are expected on Thursday.

Ray O’Rourke, chairman and chief executive, said“Laing O’Rourke has sustained a resilient performance by focusing on delivering profitable growth.

“We continue to build on our commitment to Excellence Plus performance in every aspect of our activities.”

The firm said it has maintained a strong gross cash position of £601m, down from £619m last year.  Its net cash position was £321m.  It also paid back £57m of debt.

The year saw exceptional costs before tax of £24.6m.

It said its execution of its “engineering enterprise strategy” is gathering pace, with prestigious project awards in Europe and Australia Hubs.

The company said its Design for Manufacture and Assembly (DfMA) methodology - its off site pre- construction and manufacturing factory - delivered efficiencies in project delivery and performance improvements in operational phases.

It also said it is offers an industry-leading performance in payment of suppliers (average of 21 days), directly aligning with the UK Government’s agenda to support the SME construction market.

It added: “Laing O’Rourke remains on track to deliver its 2012/13 financial targets and, beyond these, is well-positioned to achieve its strategic objectives.”

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