Developer Lend Lease has boosted its annual profit by 10 per cent despite a weak construction market, and says it is sitting on the largest pipeline of new work it has ever had.

A revenue boost from the $6 billion Barangaroo project in Sydney helped to deliver a net profit of $551.6 million in the 2012/13 financial year, up from $501.4 million the previous year.

Profit from the company’s Australian business grew by 18 per cent to $506.6 million, as earnings related to the development of the first two commercial towers at Barangaroo South offset a fall in earnings in the Australia construction business.

Profit in its second largest market, Asia, was up six per cent to $112.6 million in 2012/13.

Operations in the US also lifted profit, but the European business suffered a 2.4 per cent profit fall.

Lend Lease expects to continue to post profit growth, with $37.4 billion worth of projects on its books.

Chief executive Steve McCann said much of the group’s work involved Australian infrastructure, contradicting worries about what would replace mining investment.

“The $37.4 billion global development pipeline is the largest the company has had despite tough macro conditions,” chief executive Steve McCann said.

“Execution remains the key focus going forward.”

He said the group expected Australia’s low interest rate environment to improve the outlook for residential construction over time.

Lend Lease shares gained 11 cents, or 1.2 per cent, to $9.13.