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Brookfield Multiplex 2015 results reveal tripling in revenue and quadrupling in profit as London market booms

Brookfield Multiplex has quadrupled its pre-tax profit in the UK after revenue rose by 118 per cent.

Revenue for the year to 31 December 2015 increased to £620m, up from £284.1m in 2014, while pre-tax profit hit £21.9m, up from £5.4m.

The firm attributed this to a “buoyant” London market, especially in the high-end residential and commercial sectors.

The company’s UK order book stood at £3.1bn as of 31 December 2015. Nearly a third of its order book comprises projects won during 2015.

In total, Multiplex is set to deliver 952 apartments across six sites, for a total value of £739.3m, while it will also build 5.2m sq ft of Grade A commercial office space for a total value of £1.9bn.

Commercial schemes won by the firm in 2015 include the £150m 48 Carey Street job in Westminster for Indian client Lodha, exclusively revealed by Construction News in January.

In February 2015, the firm received all outstanding monies from its settlement agreement for the Pinnacle project (pictured).

Brookfield had claimed £14.95m in unpaid fees from Pinnacle No 1 after the scheme stalled in 2011, before reaching a settlement in January 2013.

The site has been acquired by AXA and Lipton Rogers, with Brookfield now engaged in a PCSA for the design and build of the restarted scheme.

The project has since been embroiled in a right-to-light battle, leading the City of London to purchase a stake in the scheme to mitigate the threat of legal action from neighbouring properties.

Looking ahead, the firm expects tender price inflation to grow at around 4.5 per cent in the medium term, driven by wage inflation and “an undersupply of skilled labour” in the supply chain.

However, it said tender price inflation risks were mitigated by its policy of “agreeing all main subcontract packages prior to entering into the main building contract with the client”.

The firm added 236 staff in 2015, bringing average employee numbers to 559 for the year, up from 323 a year earlier. Consequently, its wage bill rose by 61 per cent to hit £41.8m.

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