Tue 15 Jul 2008
Laing O’Rourke reports record overseas profits
Contractor Laing O’Rourke has declared a three quarter leap in profits despite poor UK market conditions thanks to the firm’s strong overseas order book.The company’s turnover increased by 21.5% to £4.2 billion, as recorded in March, thanks to a 23.8% increase in trade with the Middle East and a 115% increase to Australasia.
The firm, which is currently working on schemes such as the $20bn Al Raha beach project in Abu Dhabi, is set to continue with its plans to stimulate 20% growth year on year, said Laing CEO Tony Douglas. “With mega projects of this scale, we will see continued growth in the area. We have made great progress, and are attracting phenomenal talent. Strategically, this repositioning will help to differentiate the firm in the market.”
However, further gloom greeted the UK housebuilding industry this morning with an announcement from the Royal Institute of Chartered Surveyors (RICS) that the number of people moving house is at its lowest level since surveyors began collating records in 1978.
This news preceded reports from the Bank of England that inflation has risen to an 11-year high of 3.8%. The Bank has already warned that inflation may top 4% this year, following global rises in fuel and food prices.
However, this should not stimulate a significant reduction in house prices says Ed Mead, director at London agent Douglas & Gordon. “It looks likely that the short-term trend will be down until liquidity returns to banks, but which time it’s likely that values will have fallen further. When that happens, it’s likely we’ll see a rapid return to volumes and vales will, as always after a financial crisis, start to rise thereafter.”
Posted by Marc Da-Silva
in Bank of England, Douglas & Gordon, Ed Mead, Laing O’Rourke, News, Royal Institution of Chartered Surveyors, Tony Douglas on Tue 15 Jul 2008
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