Lend Lease has posted a 22% fall in European pre-tax profits in the last year, hit by a series of one-off factors.
Announcing its results for the year to 30 June 2012, the group said overall EDITDA was down 8.6% to £430.1m (A$659.5) from £470.5m (A$ 721.4m).
Total pre-tax profits for Europe fell from £70.3m to £54.9m.
Development pre-tax profits in Europe fell from £2.7m to £0.2m but investment management profits climbed from £25.5m to £29m.
It blamed the overall fall in European profits on a slowdown in PPP asset sales, down from 11 in 2011 to five in 2012.
The European construction business reported a 28% increase in pre-tax profits, up from £14.2m to £18.2m, despite revenue falling 14% to £718m, with highlights including the completion of the Athletes’ Village.
Other highlights in Europe included the first planning application lodged for its flagship Elephant & Castle development, SE1, and the approval of the conditional sale of its interest in Greenwich Peninsula to Quintain.
Group chief executive and managing director Steve McCann said: “Financial year 2012 has been a very successful year for Lend Lease. The group has made significant progress on executing its strategy, in particular focusing on the delivery and conversion of its significant global development pipeline.
“Lend Lease has repositioned the portfolio to generate 64 per cent of earnings from the Australian region, achieved some significant milestones in our A$20bn (£13bn) urban regeneration development pipeline, secured a A$15.3bn (£10bn) construction workbook and grown funds under management to A$12.bn (£8bn).
“We also made progress in putting in place the people, systems and processes to successfully execute our projects.
“In addition, the group realised cash of over A$950m (£620m) from recycling major assets that will be reinvested in the group’s significant pipeline of opportunities.”
jack.sidders@estatesgazette.com
