SSE HydroThe Scottish construction operation of Lendlease has blamed the delay or cancelling of projects after the Brexit vote for a 62% drop in revenue.

Glasgow-based Lendlease Construction (Scotland), part of Australian-listed Lendlease Corporation, reported pre-tax losses of £5.9 million in the year to June 2017, off revenue of £17.8m, down from £46.4m the prior year when it had reported pre-tax losses of £1.5m.

In a challenging year for the firm, which built the £125m SSE Hydro, staff numbers were cut by nearly half to 42.

Lendlease said it still remained committed to the Scottish market and was looking at several opportunities.

John Clark, finance chief for Lendlease Construction Europe, said it is confident about the year ahead despite uncertainty regarding Brexit.

The UK’s vote to leave the EU saw a short-term decline in construction activity and a number of projects either cancelled or delayed into later years, he added.

Looking ahead, the company notes: “Following the referendum vote to leave the European Union, there is significant uncertainty with most forecasts predicting a slowdown in growth in the short and medium term.

“It is likely that some projects may be postponed or cancelled, as funding becomes harder to access and investors and purchasers delay decisions.

“Volume is expected to decrease in the 2018 financial year, as current projects complete.”

Lendlease reiterated statements also made in the 2016 accounts, stating it remains “committed” to Scotland while noting “several opportunities” are being considered and advanced in what remain “challenging” market conditions.

The company again adds some of those opportunities have not been converted as it looks to strike “the right balance between risk and reward”.