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Lend Lease profits shrink

The stricken UK housing market helped cut profits at the Australian parent of Bovis Lend Lease by nearly half.

The Sydney-based developer and builder had already told analysts that difficulties at its housing arm Crosby Lend Lease would hit full year results.

In an overnight announcement to the Sydney Stock Exchange, the firm said profit after tax was down 46 per cent in the year to June coming ion at A$265.4 million (£123.5 million).

The firm said a write down of A$121.5 million (£56.5 million) had hit Crosby Lend Lease and adverse property revaluations of A$60.2 million (£28 million).

Chief executive Greg Clarke said its project management and construction business had returned to profit in all key markets.

In 2006, Bovis Lend Lease was hit by cost blowout on a number of jobs including the Bridgewater Place office scheme in Leeds, a PFI hospital scheme in Manchester and the Broadcasting House job for the BBC in London which forced the company to announce a provision of £47.5 million in February last year.

In today’s statement accompany its latest results, Lend Lease added: “The European market performed strongly but the result was still impacted by the workout of the UK projects where a provision was taken in December 2006."

The firm added that its pipeline of UK residential projects, which includes the athletes village for the 2012 Olympic Games in London, remained sound and that its PPP business over here was performing well.