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Tue June 15 2021

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Full speed for Mace growth but margins are halved

9 Jun 16 Mace has reported another year of substantial growth in turnover but with a more modest improvement in profits.

Chief executive Mark Reynolds
Chief executive Mark Reynolds

In 2015 Mace’s turnover rose 19% to £1.77bn with pre-tax profit up 3% at £36.2m. In 2014 it made £35m profit from £1.49bn turnover.

With operating profit tumbling from £32.2m to £19.1m, the profit margin was halved from 2.2% to 1.1%.

“A number of difficult projects did impact on the margin level delivered to the business,” admitted chairman Stephen Pycroft.

Despite this, the management-owned company is now set to hit its target of £2bn turnover by 2020 this year, four years early. 2015 was Mace’s 25th consecutive year of growth, thanks to substantial growth in its infrastructure business, winning work for National Grid, Transport for London and Highways England.

Another growth area for the business is property development. Last year it sold Assam Place, a student accommodation development in the City of London. Mace’s investment business now has a gross development value of £1.4bn. This is a growing area for Mace and it is looking for a funding partner to help deliver new projects.

Chief executive Mark Reynolds said: “We are now very close to achieving our £2bn revenue target, but are falling behind on margin targets. This is mainly due to legacy projects secured during the recession. Thankfully many now have come to a close and the final ones will be closed out in 2016.”

Mace’s 2015 annual report is available to read at www.macegroup.com.

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