(Reuters) -Australian developer Lendlease Group on Monday posted growing losses for the year, reflecting tough trading conditions and lower valuations for its properties coupled with the impact of legislation in the United Kingdom.
Lendlease had earlier signed a contract and had taken an A$295 million ($191.69 million) provision against potential liabilities for its properties in the UK because of industry-wide action by the country’s government.
“Our financial performance was impacted by a number of issues related to prior projects and activities,” said Managing Director Tony Lombardo.
The company attributed the results to UK legislation that forced it to shell out millions to remediate residential properties in the country.
Its statutory loss after tax for the year came in at A$232 million, compared to A$99 million reported a year ago, the company said.
The company however reported 9% growth in its full-year funds under management to A$48.3 billion and continues to expect further growth.
It also expects margins to improve for its construction business and to secure more work going ahead.
($1 = 1.5389 Australian dollars)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Sonali Paul)
