Kajima is nearly free of millions of pounds of wind-down provisions associated with its former construction business in the UK.
The Japanese firm, which announced its gradual departure from the UK construction market in 2005, spent £6.5m on “onerous commitments” in the UK sector over the course of 2023, according to its accounts for the year ending 31 December 2023.
That leaves just £194,000 of further costs from the winding down, which it expects to clear this year, the accounts revealed.
Kajima has faced a raft of issues concerning its UK operations since it withdrew from the market to focus on private finance initiative (PFI) investment. The firm was embroiled in a £13m dispute over alleged fire-safety at a PFI project in Sheffield, but, following publication of this article, Kajima confirmed that the dispute was settled in 2023.
The firm is one of Japan’s largest construction and development groups, turning over £13.5bn in the year to 31 March 2024.
Its European accounts also revealed a plummeting pre-tax profit and turnover, which it blamed on a “temporary” lack of construction work. Revenue was down by nearly 50 per cent at its construction business.
Revenue for its entire Europe business came in at £238.7m, compared with £429.4m the year before. Profit was down to £11.6m from £49.4m.
The firm’s two non-operating UK divisions are still included in its construction business, alongside three firms based in Poland, Germany and Czechia.
But it said it signed fewer contracts in 2022, which hit its results for 2023.
“The situation was temporary and has reversed for the […] financial year 2023/24 with a stronger order book secured,” it said, adding that both revenue and profit were set to increase in 2024.
Kajima Europe also operates in the property investment and development sector, and the student housing sector in Poland specifically.