The UK construction arm of Bovis Lend Lease has experienced a sharp fall in revenue for the year ending 30 June 2010, after wrestling with a “significant slowdown” in its main markets.
Bovis Lend Lease EMEA (Europe, Middle East, and Africa), which comprises mostly UK business, delivered a turnover of £1.24bn, down 22% on the £1.59bn posted a year ago. Profit before tax fell to £25.4m from £26.8bn.
Bovis is the project management, design and construction arm of Australian property giant Lend Lease, which announced its annual results in Sydney this morning.
The firm's overall revenue was £6.05bn, down from £8.46bn a year ago. Its EMEA geographic segment, which includes development and PPP businesses, reported a £1.43bn turnover in total, compared to £2.12bn in 2009.
The global business as a whole made a pre tax profit of £198m compared to a loss of £374m a year ago.
Key contributions to Lend Lease's EMEA revenue include the Athletes’ Village project for the 2012 Olympic and Paralympic Games in London, the Peel Media City mixed-use project in Manchester, and Ministry of Defence projects.
During the year, it finalised the conditional agreement for the £1.5bn regeneration of Elephant & Castle, and £1.3bn development of the second stage of Stratford City where a conditional framework agreement was signed.
Lend Lease described trading conditions across Europe and the Middle East as “difficult” and said it was “likely to underperform in the medium term”.