Laing O’Rourke has revealed how the collapse of Imtech cut £24.8m from the bottom line of its UK contracting division.
United Utilities appointed the Laing O’Rourke Imtech joint venture on the £170m Davyhulme Waste Water Treatment Works modernisation programme in Manchester in March 2015.
Dutch parent company Royal Imtech went into administration that August but Imtech UK and Ireland continued to trade normally.
O’Rourke confirmed the full hit from the failure in its annual report for the year to March 31 2016 which was published this week.
It stated: “The Group pre-exceptional gross margin dropped from 7.5 per cent in 2015 to 5.3 per cent directly as a result of lower margins in the UK business.
“UK margins were also negatively impacted by a £24.8 million margin deterioration due to the failure of one of the Group’s joint venture partners and the subsequent consequences of delivering a new water treatment plant in UK.”
O’Rourke declined to comment on the loss or officially confirm which project it related to.
from Construction Enquirer http://www.constructionenquirer.com/2017/02/01/imetch-failure-cost-laing-orourke-24-8m/
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