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Mace breaks £2bn revenue barrier

Mace has announced that turnover has passed the £2bn mark for the first time.

The firm said the increase meant its revenue had doubled in the past five years, with a third of its income now coming from international operations.

Alongside the announcement, the contractor reiterated its aim of achieving “sustainable margins” of at least 2.5 per cent, while investing £350m in research and development to boost productivity.

In its most recent full-year results published in June, Mace’s turnover stood at £1.97bn for 2017 and pre-tax margin at 0.6 per cent.

The company’s £2bn announcement comes as several major tier ones have recently posted reduced turnovers and order books, as well as increased selectivity in an effort to boost margins.

Earlier this month Morgan Sindall revealed that its order book was down 11 per cent compared with the end of 2017, which it attributed to “continued focus on contract selectivity and quality of earnings”. 

And in August, Balfour Beatty recorded an 9 per cent year-on-year reduction in turnover but a fourfold rise in profit for the first six months of 2018.

As well as 2.5 per cent margin, Mace’s 2022 business strategy details an extension of its development management services and expansion of consultancy and FM work internationally.

The company added that it wanted to deliver a ”more balanced return” from projects in order to make the business “more resilient to market fluctuations”.

Mace outlined the target of hitting £2bn in revenue in 2013 by 2020 in shortly after Mark Reynolds became chief executive.

The contractor’s revenue stood at £1.18bn at the time it set the objective, which built upon the target set in 2010 to grow revenue to £1bn

Mace cited projects including Manchester Town Hall, Dubai Expo 2020, Porsche’s North American HQ and the 2019 Pan-American Games in Peru as having driven revenue.

The firm has also been working on Tottenham Hotspur’s delayed £850m stadium and took over from Skanska on Battersea’s £1.15bn phase two.

Mace chief executive Mark Reynolds said: “We have seen the market change, we have seen great achievements and admittedly learnt some lessons along the way.

“Our company mission is to continuously pursue a better way which has helped us to grow and deliver on our promises.”

 

 

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