Sunday, November 28, 2021

Ray O’Rourke to step down from Laing O’Rourke after 45 years

Must Read

Christian McCaffrey injury update: Panthers RB spotted in walking boot after loss vs. Dolphins

Christian McCaffrey is banged-up once again. The Panthers' star running back suffered an ankle injury during Carolina's 33-10 loss...

Emmanuel Macron news: French President’s ‘hatred’ for UK shamed | Politics | News

Express.co.uk readers criticised Mr Macron following his decision to disinvite the UK to an emergency meeting on the issue....

Buccaneers’ Vita Vea shows off bloody smile after losing tooth vs. Colts

Football is a rough and physical game, but no part of the game is quite as tough as the...

Irishman Ray O’Rourke, chief executive and founder of Laing O’Rourke, the UK’s largest privately owned construction group, plans to step down after 45 years, making way for its new head to lead the group to a stock market listing.

Mr O’Rourke, who said in the summer that the group would seek an initial public offering by 2024, will be succeeded in September 2022 by Seamus French, the chief executive of Anglo American’s bulk commodities and other materials division. Mr O’Rourke will remain deputy chair of the group alongside his brother Des, with whom he founded the business in 1978 as an initial £2,500 project.

Projects

Laing O’Rourke has been involved in some of the UK’s biggest infrastructure projects including Hinkley Point nuclear power station, Heathrow Terminal 5, the Crossrail and HS2 railway and the Thames Tideway — a sewage tunnel under the river. It also has a base in Australia which it considered withdrawing from in 2016, but reversed course and refinanced the business.

If the group picked London for its planned flotation it would join large listed competitors such as Balfour Beatty, Kier and Morgan Sindall.

Stephen Rawlinson, analyst at Applied Value, estimated that the business could be valued at around £700 million (€831m). “The company is moving to the next stage as there are many opportunities for growth in the UK market,” he said.

The UK’s construction industry is benefiting from prime minister Boris Johnson’s plans to spend £600billion on infrastructure over five years, but it is also grappling with severe labour shortages in the wake of Britain’s decision to leave the EU, as well as rising material costs.

UK contractors have faced a difficult time since the collapse of the outsourcer Carillion in 2018. Interserve has been taken into the hands of creditors and is in the process of being wound down, while Kier has been rebuilding its balance sheet after a series of profit warnings.

Laing O’Rourke made a £45.5 million pre-tax profit in its 2020 financial year on revenues of £2.4 billion after suffering a loss of nearly £220 million four years earlier.

To reduce labour costs and shorten construction times, Laing O’Rourke is a longtime advocate of off-site manufacturing, which involves building large sections for construction projects in factories and bringing them to sites. It says that it manufactures 70 per cent of a project off site, improving productivity.

“It is the most advanced operation in off-site manufacturing in the UK building and infrastructure sector, which differentiates it from its peer group,” said Mr Rawlinson.

The company’s chair, Sir John Parker, said French was a “world-class executive with rich engineering experience, a successful leadership and project record, and deep knowledge of our operating markets.” – Copyright The Financial Times Limited 2021

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Christian McCaffrey injury update: Panthers RB spotted in walking boot after loss vs. Dolphins

Christian McCaffrey is banged-up once again. The Panthers' star running back suffered an ankle injury during Carolina's 33-10 loss...

Emmanuel Macron news: French President’s ‘hatred’ for UK shamed | Politics | News

Express.co.uk readers criticised Mr Macron following his decision to disinvite the UK to an emergency meeting on the issue. This came after at least...

Buccaneers’ Vita Vea shows off bloody smile after losing tooth vs. Colts

Football is a rough and physical game, but no part of the game is quite as tough as the battle in the trenches. Vita Vea...

Morning Report 29 Nov 21: ASX 200 set to open lower as investors assess the risk of the latest Covid variant

By 9:30AM November 29, 2021 US & European sharemarkets tumbled on Friday on fears that that coronavirus mutation could be vaccine resistant. US President Joe...

New England Patriots ease to sixth straight victory

The New England Patriots made it six straight victories as they saw off the Tennessee Titans 36-13 at Gillette Stadium to sit 8-4 at...

More Articles Like This