Thursday, November 19, 2009

Brookfield sets sights on returning first UK profit

Wembley builder Brookfield Construction (UK) expects to deliver a profit for the first time this year after years in the red.

Since the firm- then trading as Multiplex - entered the UK to carry out the Wembley Stadium contract, it has failed to return a profit.

But Ashley Muldoon, managing director, Brookfield Construction, said the firm's fortunes have changed and it is set on a course to make its first profit in 2009.

Last week, Brookfield secured a ВЈ670m order for the New South Glasgow Hospital campus - the biggest single NHS hospital building project ever undertaken in Scotland.

Muldoon said: "In addition to Glasgow, we are in the process of completing the ВЈ350m Peterborough Hospital.


Brookfield sets sights on returning first UK profit


"We are also committed to the construction of the ВЈ600m Pinnacle Tower in Bishopsgate London, which, at 300m-tall, is poised to be the tallest building in the City of London. In addition to this, we will be completing the tallest residential tower in London "Strata" in the summer of 2010.

He added: "All of these significant projects are at the core of Brookfield Construction's ongoing expansion and we are confident that we will be in profit in 2009."

The firm plans to concentrate on the hospital market for new work over the next 12 to 18 months.

Last week, Brookfield Construction posted results covering the 18-months to 2008, which showed a pre-tax loss of ВЈ4.3m on ВЈ268m turnover.

The extended financial reporting period brings the company into line with its new Canadian parent company Brookfield Asset Management.

The Companies House report reveals that its Austrian-based sister company Brookfield Multiplex has indemnified the UK against any future claims or costs arising from ongoing Wembley Stadium legal action.

Last year, Brookfield filed a ВЈ253m writ against structural designer Mott MacDonald, claiming the engineer failed to warn it of design changes and providing 'late and inadequate' information.

Mott has countered calls for proof that its designs caused the delays and launched a counter-claim for ВЈ230,000 in unpaid fees.

Dollar General may go public next weekBrookfield scoops ВЈ550m Glasgow hospital contract