PFI: Smell The Gravy
Reuters: John Laing posts 18 pct profit rise
John Laing, which manages building projects such as schools, hospitals, roads and police stations, made 25.1 million pounds in pretax profit in 2004, while turnover was flat at 481 million pounds.
Last Friday, John Laing and Serco Group said their joint venture was preferred bidder for a 761 million pound project to develop three hospitals for Leicester University Hospital NHS Trust.
John Laing, which has focused on investing in infrastructure after selling its construction, housebuilding and property arms, said the contract was the government’s largest hospital private finance initiative (PFI) deal to date outside London.
Bradenton Herald: Homebuilders implicated in kickback scam
DENVER - Sixteen homebuilders across the nation guaranteed business to a large title insurance company in exchange for kickbacks, a Colorado insurance regulator said in an interview.
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Other large builders on the list include Beazer Homes USA Inc., MDC Holdings Inc., Engle Homes, John Laing Homes, Pulte Homes Inc. and Ryland Group Inc.
Financial Times: John Laing hit by overrun charge
John Laing has been forced to pay up to £12.7m for delays and cost overruns on its contract to rebuild the Great Eastern Hotel in London.
A High Court judge ruled that the support services group was responsible for the stalled project that was completed in 2000 and awarded damages of £8.9m, a payment of up to a further £3.8m has also been pencilled in to cover additional damages decided by experts.
Corporate Watch: UK Construction Industry Overview
…local authorities have obviously ignored Laing’s previous PFI work on the Manchester Metrolink. In 2001, Altram Manchester, created by Laing, Serco and the 3i Group, manged to lose an extra 54% (£5.96m) on the previous year.
Altram’s accounts, which show that the company has breached the terms of its banking covenants, were initially due to be filed in October 2002 but Altram has consistently failed to comply with Companies House deadlines. Altram, which had senior bank loans amounting to more than £59 million at the end of 2001, faced interest charges of almost £7.8 million during 2001, although it made an operating profit of only £1.7 million.86
The Greater Manchester Passenger Transport Executive (GMPTE) is terminating Altram’s running of Metrolink as part of a further extension of the service. It will announce the winner of the new contract in early 2004. Laing is understood to be looking forward to walking away from the project.
HSE Press Release: E058:04 - 23 April 2004: John Laing Services Ltd fined £175,000 for double fatality
John Laing Services Limited were today fined a total of £ 175,000 and ordered to pay £40,000 costs at Southwark Crown Court, after pleading guilty to a breach of health and safety legislation. The case, brought by the Health and Safety Executive (HSE) followed two deaths during construction work at Alembic House, Albert Embankment, London, SE11.
Posted on March 22nd, 2005 at 7:44 am