Arm of multinational construction firm uncertain of ability to continue
Laing O’Rourke Ireland, a subsidiary of Irish-owned multinational construction firm Laing O’Rourke, has reported an uncertainty which may cast doubt on its ability to continue as its parent group is looking to refinance or renew debt facilities.
The potential material uncertainty relating to Laing O’Rourke Ireland is included in its results for the year ended March 2020. It said the company relies upon its trading relationship with and financial support from its ultimate owner, Laing O’Rourke Corporation Limited Group.
The UK-headquartered group indicated the existence of a material uncertainty which may cast significant doubt about its ability to continue as a going concern in its annual report published in December. It related to the group’s dependency on renewing or refinancing its current debt facilities, which mostly have an expiry date of December 31, 2021
The group also highlighted the need to convert its order book to cash and win more work over the 15 months to March 31, 2022. It adds these are subject to factors including the potential future impacts of Covid-19, Brexit and the implementation of the UK-EU trade agreement.
As a result of the group’s issues, Laing O’Rourke Ireland flagged a potential material uncertainty which may cast doubt on its ability to continue as a going concern. The Irish firm added it had not entered new contracts for years and is “undecided on engaging in new work in the foreseeable future” due to the economy.
Despite the uncertainties, the Irish firm’s directors have a reasonable expectation that the group and company would have adequate resources to continue in operational existence for the foreseeable future, and will continue as a going concern.
A Laing O’Rourke spokesman said it had given a “robust and prudent” assessment of potential scenarios in its group reporting. It added it had secured a strong pipeline of work in Australia, the Middle East and the UK, adding it had “confidence in a successful refinancing renewal”.