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Multiplex’s margin falls to 0.4% in 2017 results

Multiplex’s pre-tax margin fell to 0.4 per cent in 2017 as the company dealt with a problem job.

Its accounts for the year to 31 December 2017 showed Multiplex made pre-tax profit of £4.2m, down 74 per cent from £15.9m in 2016, when pre-tax margin stood at 1.5 per cent.

Turnover for 2017 stood at £1.16bn, up 1.5 per cent from £1.04bn in 2016.

The company’s report said a “challenging” project due to be completed in 2018 had wiped out higher margins earned on other jobs.

Multiplex’s net cash from operations also slumped to £17m in 2017, down 81 per cent from £89m in 2016.

The company said it was confident performance would improve in 2018, with office space and high-end residential property still in demand in London.

However, it warned that “ongoing political uncertainty” in the UK could “have an effect on the appetite for investment in our key market sectors”.

Multiplex said its order book increased from £3.6bn in 2016 to £4.2bn in 2017.

This was largely split across 12 residential projects and five commercial schemes.

The company highlighted its £600m contract for a mixed-use development at One Nine Elms (pictured) and £217m of work on phase one of the Royal Albert Dock redevelopment in London, both of which started in 2017.

Last August Multiplex backed out of a deal to build a £750m mixed-use scheme in Shoreditch having carried out enabling works after failing to agree terms with developers.

Construction News revealed in March that Multiplex and Skanska were facing off to secure the contract for a £350m redevelopment of New Scotland Yard’s former London headquarters.

Multiplex’s turnover has increased from £284m to £1.16bn since 2014.

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