Losses swell at Lendlease as strategy-related impairments hit
Australian-listed Lendlease has recorded pretax losses of A$1.5bn (£770m) in the 12 months ended 30 June, up from a loss of A$232m a year earlier.
The losses were largely attributed to strategy-related impairments and charges, following the group’s announcement in May that it would sell off its international construction business and refocus its European division on partnerships.
Lendlease said lower investment property valuations had also contributed to the mounting losses.
Australian-listed Lendlease has recorded pretax losses of A$1.5bn (£770m) in the 12 months ended 30 June, up from a loss of A$232m a year earlier.
The losses were largely attributed to strategy-related impairments and charges, following the group’s announcement in May that it would sell off its international construction business and refocus its European division on partnerships.
Lendlease said lower investment property valuations had also contributed to the mounting losses.
Group chief executive Tony Lombardo said: “Our results for FY24 reflected challenging business conditions and the early actions from our refreshed strategy. We have made significant progress towards our target of recycling A$2.8bn of capital in FY25, with further cost savings realised as a result of our simplified management structure.”
He added: “Our priorities remain strengthening our balance sheet, returning capital to securityholders, investing in our high-return Australian operations and growing our international investments platform.”
Lendlease said it had progressed A$1.9bn of its planned A$2.8bn disposal strategy so far, had removed its regional management structures and signed heads of terms to divest its US construction business, winding down operation on the west coast and central regions. The UK construction business is now being prepped for sale, said the group.
Over the next 18 months, Lendlease expects to have reduced its full-time employee headcount by around 1,400 through the sale of its businesses and have ceased all new development origination in overseas markets.
