Laing O’Rourke turnaround “complete”

Contractor Laing O’Rourke has an outline agreement for refinancing its UK business, but has delayed its 2017-18 annual report to the end of the year.

The firm said that it had completed the refinance of its Australian businesses in mid-2018, and now has an outline agreement with its primary banking partners for UK refinancing.

In its update to the market, the company also confirmed that its business turnaround is now complete.

However, it said that it will not be able to file its 2017-18 annual report until “Christmas at the earliest”, blaming “delays associated with historic turbulence in the construction sector”.

Laing O’Rourke added: “In 2018, the construction industry has experienced the collapse of a number of companies, large and small. This has impacted the approach of banks, insurers, regulators and auditors – and ultimately will prevent Laing O’Rourke closing out its formal statements in the coming weeks.”

Despite the delay, the firm insisted it has had a successful year, saying it will post a profit for both its UK operations and globally. Earnings before interest and taxes for the full year is forecast to be £70m, it said.

“We have built a pipeline of high-quality projects,” said chief executive Ray O’Rourke (pictured). “Laing O’Rourke is committed to play its part, to drive enhanced confidence and investment in the sector.”

Last week, Laing O'Rourke was named as the contractor taking on the Royal Liverpool Hospital project, after the PFI deal with Carillion was terminated.