Laing slides to £24.7m loss

NEW John Laing boss Bill Forrester unveiled a full-year loss of £24.7 million and said a preferred bidder had been identified for Laing Property. Forrester, who took over as executive chairman six weeks ago, has not yet decided if he should sell one of the two remaining businesses, Laing Homes and Laing Investments, as many City analysts have suggested.

He hinted that he may try to keep the group together. 'All options are being examined. Continuing as is is a very good option. There is no undue pressure to sell Homes,' he said.

Forrester added that the group's disappointing trading performance was attributable to operating losses in Laing construction. They were £94.5m before the sale of the business, and there was a £33.6m hit on the deal itself. Forrester hopes to announce the sale of the property division for 'in excess of book value' in the next few weeks.

Operating profits for Laing Homes were flat at £53.3m on sales of £381m, up 8%. Laing sold 11% more homes in 2001 but the average price slipped from £238,000 to £211,000. Laing Investments, which specialises in big infrastructure projects such as the second Severn Crossing, saw profits swell to £83.2m from £27.4m, boosted by £48m from the sale of Europistas. The company said both businesses were on a sound footing for the coming year with the British housing market remaining strong and reservations up on the previous year.

In infrastructure, Laing has a 'substantial pipeline of new opportunities' and has recently been awarded a 20-year franchise to run the Chiltern Railway Line, often considered one of the best run railways in the country. It has committed to spending £371m on upgrading the line, including £140m on the track and £131m on the trains. Analysts have consistently suggested that Laing does not have the money to develop both divisions.

Forrester said goals in the next few months include simplifying the management structure and reducing overheads. He will also try to negotiate a new refinancing package with his banks. Despite the need to refinance the group's debt burden, he promised there would be no further call on shareholders following September's rights issue.

There was a loss per share of 33.9p.