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Failed subbie blamed for profits drop

MATERIALS

THE FAILURE of a concrete subcontractor has been blamed for a drop in profits by Bovis Lend Lease's Australian parent company.

Lend Lease highlighted the collapse of Burnley-based reinforced concrete specialist RCG as one of the reasons behind a £50 million dip in pre-tax profits for the year ending June 2005.

RCG was working for Bovis Lend Lease on the 32-storey Bridgewater Place mixed-use development in Leeds when it failed last year. Lend Lease also cited the BBC Broadcasting House rebuild as a difficult job. The firm had to put down an extra £15.5 million after tax provision to sort out the projects.

It blamed RCG's failure, delays due to adverse weather and inadequate programme management.