Bovis Construction (Europe) has bounced back into profit following its breakaway from Lendlease, but the turnaround is largely driven by one-off accounting gains linked to the business reset in the sale.

The contractor posted a £56m pre-tax profit for the nine months to 31 March 2025, reversing a near £14m loss the previous year.

Revenue dropped to £291m from £465m, reflecting both the shorter reporting period and the impact of the carve-out from its former parent.

The business was sold by Lendlease to US private equity owner Atlas Holdings on 31 March 2025, marking a major reset that saw the contractor revert to the historic Bovis name and restructure under a new UK holding group.

A key driver behind the profit swing was a £35m boost from the reversal of provisions following indemnities agreed as part of the deal.

Cash fell sharply to £27m from £91m after a £202m dividend was paid out ahead of the transaction, cutting net assets to £44m from £196m.

After the balance sheet reset, chief executive David Cadiot said Bovis remained financially robust with no external debt and backing from its new owner.

He said: “Under new ownership, Bovis Construction (Europe) Limited is well-positioned to build on its legacy and accelerate its ambitions.

“With a strong order book, a renewed focus on sustainable growth, and the backing of a long-term strategic investor, the business is confident in its ability to deliver consistent profitability and value creation over the medium and long term as its preferred pipeline converts.”

Bovis has already secured a string of post-sale wins including 60 Gracechurch Street, One Museum Street and defence schemes worth £273m at Kendrew Barracks and Bulwell Army Reserve Centre.

Most recently Bovis sealed a pre-construction services agreement to deliver a £200m overhaul of the home to the London Stock Exchange at 10 Paternoster Square and a £150m office job for developer GPE at St Thomas Yard in the shadow of the Shard

It has also secured places on the Crown Commercial Service consultancy framework and the New Hospital Programme alliance, providing a pipeline of public sector opportunities.

Headcount at the business stands at 830 staff, down from 930 in the prior year.