Lendlease says the unknown timeline of COVID-19 will further suppress the group’s earnings, with the major construction group already experiencing a financial dent as a result of the pandemic.
The company posted a statutory loss of $310 million for the 12 months ending June 30, a 166.4 per cent slump compared with the 2019 financial year.
Lendlease said the loss was primarily caused by a $368 million exit cost associated with the intended sale of its engineering business and also COVID-19-related impacts incurred upon its core operations.
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“While the duration of the impacts of the pandemic is uncertain, near-term effects
from COVID-19 are continuing, and we expect current conditions to suppress first-half earnings,†the company said in its update to the Australian Stock Exchange.
The company has issued a final dividend of 3.3 cents per share, bringing the total 2020 financial year dividend payout to investors to 33.3 cents per share.
Lendlease chief executive Steve McCann said despite the “disappointing†financial result, the company had been able to secure two major urbanisation projects in London and San Francisco at an approximate value of $37 billion.
“Our core business is at an exciting point with a development pipeline of $113 billion and a growing number of major urbanisation projects in our international gateway cities across the US and Europe in particular,†he said.
“We are well placed to double our current $36 billion funds under management as this pipeline is delivered.â€
Business Reporter
Gerard Cockburn is a business reporter. Prior to joining The Australian, he has worked as a journalist for the Courier Mail and published in The Age.
